2006 Georgia Code - 53-12-287

53-12-287. (a) As used in this Code section, the terms 'property' and 'investment' shall be deemed to include life insurance, endowment, and annuity contracts issued by any insurer authorized to do business in this state. (b) In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing property for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevailing, that a prudent person acting in a like capacity and familiar with such matters would use to attain the purposes of the account. In making investment decisions, a trustee may consider the general economic conditions, the anticipated tax consequences of the investments, the anticipated duration of the account, and the needs of its beneficiaries. (c) Within the limitations of the standard provided in subsection (b) of this Code section and considering individual investments as part of an overall investment strategy, a trustee in authorized to acquire and retain every kind of property including real, personal, or mixed and every kind of investments, specifically including, but not by way of limitation, bonds, debentures, and other corporate obligations, and stocks, preferred or common, including the securities of or other interests in any open-end or closed-end management investments company or investment trust registered under the Investment Company Act of 1940, as now or hereafter amended. The propriety of an investment decision is to be determined by what the trustee knew or should have known at the time of the decision about the inherent nature and expected performance of the investment (including probable yield), the attributes of the portfolio, the general economy, and the needs and objectives of the beneficiaries of the account as they existed at the time of the decision. Any determination of liability for investment performance shall consider not only the performance of a particular investment but also the performance of the individual´s portfolio as a whole. Within the limitations of such standard, a trustee may retain property properly acquired, without limitation as to time and without regard to its suitability for original purchase. (d) Anything in this Code section or any other law of this state to the contrary notwithstanding, the income beneficiary of a trust designed to qualify for the federal estate or gift tax marital deduction under the Internal Revenue Code or any subsequent statute of similar import shall have the right to direct the trustee of the trust to convert any unproductive or nonincome-producing property which is at any time acquired, invested in, or retained by the trustee into productive or income-producing property. (e) A trustee which is a bank or trust company shall not be precluded from acquiring and retaining the securities of or other interests in an investment company or investment trust because the bank or trust company or an affiliate provides services to the investment company or investment trust as investment adviser, custodian, transfer agent, registrar, sponsor, distributor, manager, or otherwise and receives compensation for such services.

Disclaimer: These codes may not be the most recent version. Georgia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.