§ 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

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. ­­-------- (L.

liance 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. ­­-------- (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.