Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.
Source: L. 95: Entire article added, p. 311, § 1, effective July 1.
This section derives from the 1991 Illinois act, 760 ILCS 5/5(a)(2) (1992), which draws upon Restatement of Trusts 3d: Prudent Investor Rule § 227, comment b, at 11 (1992). Trustees are not insurers. Not every investment or management decision will turn out in the light of hindsight to have been successful. Hindsight is not the relevant standard. In the language of law and economics, the standard is ex ante, not ex post.
Structure Colorado Code
Title 15 - Probate, Trusts, and Fiduciaries
Article 1.1 - Uniform Prudent Investor Act
§ 15-1.1-101. Prudent Investor Rule
§ 15-1.1-102. Standard of Care - Portfolio Strategy - Risk and Return Objectives
§ 15-1.1-104. Duties at Inception of Trusteeship
§ 15-1.1-107. Investment Costs
§ 15-1.1-108. Reviewing Compliance
§ 15-1.1-109. Delegation of Investment and Management Functions
§ 15-1.1-110. Language Invoking Standard of Article
§ 15-1.1-111. Application to Existing Trusts
§ 15-1.1-112. Uniformity of Application and Construction
§ 15-1.1-115. Colorado Changes to Uniform Act - Specific Statutes Control - Use of Term "Trustee"