In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.\n(b) A trustee's investment and management decisions respecting individual assets shall be considered in the context of the trust portfolio as a part of an overall investment strategy reasonably suited to the trust.\n(c) Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries:\n(1) general economic conditions;\n(2) the possible effect of inflation or deflation;\n(3) the expected tax consequences of investment decisions or strategies;\n(4) the role that each investment or course of action plays within the overall trust portfolio;\n(5) the expected total return from income and the appreciation of capital;\n(6) other resources of the beneficiaries;\n(7) needs for liquidity, regularity of income, and preservation or appreciation of capital; and\n(8) an asset's special relationship or ciation of capital;\n(6) other resources of the beneficiaries;\n(7) needs for liquidity, regularity of income, and preservation or appreciation of capital; and\n(8) an asset's special relationship or special value, if any, to the purposes of the trust or to one of the beneficiaries.\n(d) A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.\n(e) A trustee may invest in any kind of property or type of investment consistent with the standards of this chapter.\n(f) A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has such special skills or expertise, shall have a duty to use such special skills or expertise.
Massachusetts Legal Code