14-10902. Standard of care; portfolio
strategy; risk and return objectives


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
shall not be evaluated 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.


C. Among circumstances that a trustee shall consider in investing and managing
trust assets are any of the following that 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, which may include financial assets, interests in closely held enterprises,
specialty assets, alternative investments, tangible and intangible personal property and
real property.


5. The expected total return from income and the appreciation of capital.


6. Other resources of the beneficiaries.


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.


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


E. A trustee may invest in any kind of property or type of investment consistent
with the standards of this article.