Texas Property Code

§ 117.004 — STANDARD OF CARE; PORTFOLIO STRATEGY; RISK AND RETURN OBJECTIVES

PR § 117.004Title 9. TRUSTS · Part B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · Ch. 117. UNIFORM PRUDENT INVESTOR ACT

Statute text

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(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.

(c)Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as 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;

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Legislative history

Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.