Utah Code 75-7-902. Standard of care — Portfolio strategy — Risk and return objectives
Current as of: 2024 | Check for updates
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(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.
Terms Used In Utah Code 75-7-902
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Property: includes both real and personal property or any interest therein and means anything that may be the subject of ownership. See Utah Code 75-1-201 v2
- Trust: includes :(60)(a)(i) a health savings account, as defined in Section 223of the Internal Revenue Code;(60)(a)(ii) an express trust, private or charitable, with additions thereto, wherever and however created; or(60)(a)(iii) a trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. See Utah Code 75-1-201 v2
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, and successor trustee, and cotrustee, whether or not appointed or confirmed by the court. See Utah Code 75-1-201 v2
(2) 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.(3) Among circumstances that a trustee shall consider in investing and managing trust assets are the following which may be relevant to the trust or its beneficiaries:(3)(a) general economic conditions;(3)(b) the possible effect of inflation or deflation;(3)(c) the expected tax consequences of investment decisions or strategies;(3)(d) 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, tangible and intangible personal property, and real property;(3)(e) the expected total return from income and the appreciation of capital;(3)(f) other resources of the beneficiaries;(3)(g) needs for liquidity, regularity of income, and preservation or appreciation of capital; and(3)(h) an asset’s special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.(4) A trustee shall make a reasonable effort to verify 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 chapter.