Sec. 1502.
(1) A fiduciary shall invest and manage assets held in a fiduciary capacity as a prudent investor would, taking into account the purposes, terms, distribution requirements expressed in the governing instrument, and other circumstances of the fiduciary estate. To satisfy this standard, the fiduciary must exercise reasonable care, skill, and caution.
(2) The Michigan prudent investor rule is a default rule that may be expanded, restricted, eliminated, or otherwise altered by the provisions of the governing instrument. A fiduciary is not liable to a beneficiary to the extent that the fiduciary acted in reasonable reliance on the provisions of the governing instrument.
History: 1998, Act 386, Eff. Apr. 1, 2000 Popular Name: EPIC
Structure Michigan Compiled Laws
Chapter 700 - Estates and Protected Individuals Code
Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206)
Article I - Definitions, General Provisions, and Court Jurisdiction (700.1101...700.1512)
386-1998-I-5 - Part 5 Prudent Investor Rule (700.1501...700.1512)
Section 700.1501 - Short Title of Part; Definitions.
Section 700.1502 - Prudent Investor Rule.
Section 700.1503 - Portfolio Strategy; Risk and Return Objectives.
Section 700.1504 - Diversification.
Section 700.1505 - Duties at Inception.
Section 700.1506 - Duties of Fiduciary in Interest of Beneficiaries.
Section 700.1507 - Impartiality.
Section 700.1508 - Investment Costs.
Section 700.1509 - Reviewing Compliance.
Section 700.1510 - Delegation of Investment and Management Functions.
Section 700.1511 - Language Invoking Standard of Prudent Investor Rule.
Section 700.1512 - Application to Existing Fiduciary Estates.