Sec. 117.003. PRUDENT INVESTOR RULE. (a) Except as otherwise provided in Subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this chapter.
(b) The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provisions of the trust.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
Structure Texas Statutes
Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts
Chapter 117 - Uniform Prudent Investor Act
Section 117.002. Uniformity of Application and Construction
Section 117.003. Prudent Investor Rule
Section 117.004. Standard of Care; Portfolio Strategy; Risk and Return Objectives
Section 117.005. Diversification
Section 117.006. Duties at Inception of Trusteeship
Section 117.009. Investment Costs
Section 117.010. Reviewing Compliance
Section 117.011. Delegation of Investment and Management Functions