Uniform Prudent Investor Act

The act governs how trustees invest and manage trust assets, replacing rigid, investment-by-investment restrictions with a prudent investor standard under which the trustee's conduct is judged in the context of the overall portfolio and its risk and return objectives. It sets out the trustee's core duties — loyalty, impartiality among beneficiaries, diversification, keeping investment costs reasonable, and reviewing assets and making decisions at the outset of the trusteeship — and specifies that compliance is judged based on the facts and circumstances at the time of the decision rather than by hindsight. The rule is a default that a trust's own terms may expand, restrict, or override, and the act authorizes a trustee to delegate investment and management functions subject to duties of care in selecting, instructing, and monitoring the agent.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.