469.902. Trustee duties and powers--decisions to be evaluated in context of trust.
Trustee duties and powers--decisions to be evaluated in context oftrust.
469.902. 1. A trustee shall invest and manage trust assets as aprudent investor would, by considering the purposes, terms, distributionrequirements, and other circumstances of the trust. In satisfying thisstandard, the trustee shall exercise reasonable care, skill, and caution.
2. A trustee's investment and management decisions respectingindividual assets and courses of action must be evaluated not in isolationbut in the context of the trust portfolio as a whole and as a part of anoverall investment strategy having risk and return objectives reasonablysuited to the trust.
3. When investing and managing trust assets, a trustee shall considerthe following as are relevant to the trust or its beneficiaries:
(1) General economic conditions;
(2) The possible effect of inflation or deflation;
(3) The expected tax consequences of investment decisions orstrategies;
(4) The role that each investment or course of action plays withinthe overall trust portfolio;
(5) The expected total return from income and the appreciation ofcapital;
(6) Other resources of the beneficiaries known to the trustee;
(7) Needs for liquidity, regularity of income, and preservation orappreciation of capital;
(8) An asset's special relationship or special value, if any, to thepurposes of the trust or to one or more of the beneficiaries; and
(9) The size of the portfolio, nature and estimated duration of thefiduciary relationship and distribution requirements under the governinginstrument.
4. A trustee shall make a reasonable effort to ascertain factsrelevant to the investment and management of trust assets.
5. A trustee may invest in any kind of property or type of investmentconsistent with the standards of this act**.
6. A trustee who has special skills or expertise, or is named trusteein reliance upon the trustee's representation that the trustee has specialskills or expertise, has a duty to use those special skills or expertisewhen investing and managing trust assets.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511)*Transferred 2004; formerly 456.902
**"This act" (H.B. 1432, 1996) contained numerous sections. Consult Disposition of Sections table for a definitive listing.