California Probate Code

§ 16047

PROB § 16047 Effective Jan 1, 1996Div. 9 · Part 4 · Ch. 1 · Art. 2.5

Statute text

(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 and courses of action 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.

(c)Among circumstances that are appropriate to consider in investing and managing trust assets are the following, to the extent relevant to the trust or its beneficiaries:

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Legislative history

Added by Stats. 1995, Ch. 63, Sec. 6. Effective January 1, 1996.