Sec. 2. (a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms of the trust, 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 those 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 strategies.
(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.
(8) An asset's special relationship or special value, if any, to the purposes of the trust or to one (1) 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 the special skills or expertise.
As added by P.L.137-1999, SEC.3. Amended by P.L.51-2014, SEC.23.
Structure Indiana Code
Title 30. Trusts and Fiduciaries
Chapter 3.5. Indiana Uniform Prudent Investor Act
30-4-3.5-1. Compliance With Prudent Investor Rule
30-4-3.5-2. Prudent Investor Rule
30-4-3.5-3. Diversification of Investments
30-4-3.5-4. Review of Trust Assets
30-4-3.5-5. Trust Managed in Interest of Beneficiaries
30-4-3.5-6. Impartial Management
30-4-3.5-8. Determination of Compliance With Prudent Investor Rule
30-4-3.5-9. Delegation of Functions by Trustee
30-4-3.5-10. Authorization of Investments or Strategies
30-4-3.5-11. Applicability of Chapter