Articles for Individual Trustees

UPIA §2(b) – Duty to Monitor Risk and Return

UPIA §2(b) – Duty to Monitor Risk and Return

The preamble to the Uniform Prudent Investor Act notes, “The tradeoff in all investing between risk and return is identified as the fiduciary’s central consideration.” For most trustees determining the return that was produced by the assets held in trust is a fairly straightforward exercise.

UPIA §7 re Duty to Pay Only Fair Fees

UPIA §7 re Duty to Pay Only Fair Fees

“Wasting beneficiaries’ money is imprudent. In devising and implementing strategies for the investment and management of trust assets, trustees are obligated to minimize costs” (National Conference of Commissioners on Uniform State Laws). Duty to Pay Only Fair...

Reconciling the Duty to Diversify

Reconciling the Duty to Diversify

When is the trust capital adequately diversified? Is owning five single family houses in Long Beach, California diversified? Is owning one index mutual fund that holds over 1,000 securities diversified? And what is the trustee to do if the asset that originally funded the trust was NOT diversified?