Section 469.902

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY

Chapter 469

Effective - 28 Aug 2004   

  469.902.  Trustee duties and powers — decisions to be evaluated in context of trust. — 1.  A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust.  In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.

  2.  A trustee's investment and management decisions respecting individual assets and courses of action must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.

  3.  When investing and managing trust assets, a trustee shall consider the 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 or strategies;

  (4)  The role that each investment or course of action plays within the overall trust portfolio;

  (5)  The expected total return from income and the appreciation of capital;

  (6)  Other resources of the beneficiaries known to the trustee;

  (7)  Needs for liquidity, regularity of income, and preservation or appreciation of capital;

  (8)  An asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries; and

  (9)  The size of the portfolio, nature and estimated duration of the fiduciary relationship and distribution requirements under the governing instrument.

  4.  A trustee shall make a reasonable effort to ascertain facts relevant to the investment and management of trust assets.

  5.  A trustee may invest in any kind of property or type of investment consistent with the standards of this act^*.

  6.  A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise when investing and managing trust assets.

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(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.