633.4302  Standard of care--portfolio strategy--risk and return objectives.

1.  A trustee shall invest and manage trust property 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.

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.  A trustee shall consider all of the following circumstances, to the extent relevant to the trust or its beneficiaries in investing and managing trust property:

a.  General economic conditions.

b.  The possible effect of inflation or deflation.

c.  The expected tax consequences of investment decisions or strategies.

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.

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

f.  Other resources of the beneficiaries.

g.  Needs for liquidity, regularity of income, and preservation or appreciation of capital.

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 property.

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

Section History: Recent form

  99 Acts, ch 125, §62, 109


  Section effective July 1, 2000; 99 Acts, ch 125, §109

Previous Section 633.4301

Next Section 633.4303

Return To Home index

© 2001 Cornell College and League of Women Voters of Iowa

Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Mon Jan 22 17:13:42 CST 2001
URL: /DOCS/IACODE/2001/633/4302.html