UPIA
The
Uniform Prudent Investor Act, approved by the National Conference
of Commissioners on Uniform State Laws in 1994 and adopted in
most states, describes the fiduciary standard of care for a
private trust thus [Section 2]:
(a) 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.
(b) A trustee's investment and management decisions respecting
individual assets 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.”
(e) A trustee may invest in any kind of property or type of
investment consistent with the standards of this [Act].
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