55-5-7. Prudent investor rule.
No specific investment or course of action is, taken alone, prudent or imprudent. The trustee may invest in every kind of property and type of investment, subject to this chapter. The prudent investor rule is a test of conduct and not of resulting performance. The prudent investor rule may be expanded, restricted, eliminated, or otherwise altered by the terms of the trust instrument or court order. Unless expanded, restricted, eliminated, or otherwise altered by the terms of the trust instrument or a court order, the trustee's investment decisions and actions shall be judged in terms of the trustee's reasonable judgment regarding the anticipated effect on the trust portfolio as a whole under the facts and circumstances prevailing at the time of the decision or action. No trustee is liable to a beneficiary to the extent that the trustee acted in reliance on the provisions of the trust instrument or court order.
Source: SL 1995, ch 271, §7; SL 2009, ch 252, §30; SL 2010, ch 232, §13.
Structure South Dakota Codified Laws
Title 55 - Fiduciaries and Trusts
Chapter 05 - Investment And Management Powers Of Fiduciaries
Section 55-5-6 - Standards for investing and managing assets.
Section 55-5-7 - Prudent investor rule.
Section 55-5-8 - Diversification of investments.
Section 55-5-10 - Investment strategy--Productivity judged by whole portfolio.
Section 55-5-11 - Circumstances considered in investment decisions.
Section 55-5-12 - Precedence of express provisions of trust instrument.
Section 55-5-13 - Court authority over trustee.
Section 55-5-14 - Authorization language.
Section 55-5-15 - Applicability of chapter.
Section 55-5-16 - Delegation of responsibilities to others.
Section 55-5-17 - Duties of trustee with respect to life insurance--Notice to settlor.