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§18-15-2  Standard of care – Portfolio strategy – Risk and return objectives. –

Published: 2015

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Rhode Island Uniform Prudent Investor Act

SECTION 18-15-2

   § 18-15-2  Standard of care –

Portfolio strategy – Risk and return objectives. –

(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 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 any of the following that 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


   (4) 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;

   (5) The expected total return from income and the

appreciation of capital;

   (6) Other resources of the beneficiaries;

   (7) Needs for liquidity, regularity of income, and

preservation or appreciation of capital; and

   (8) An asset's special relationship or special value, if any,

to the purposes of the trust or to one or more of the beneficiaries.

   (d) A trustee shall make a reasonable effort to verify facts

relevant to the investment and management of trust assets.

   (e) A trustee may invest in any kind of property or type of

investment consistent with the standards of this chapter.

   (f) A trustee who has special skills or expertise, or is

named trustee in reliance upon the trustee's representation that the trustee

has special skills or expertise, has a duty to use those special skills or


History of Section.

(P.L. 1996, ch. 276, § 1.)