2005 Idaho Code - 68-502 — STANDARD OF CARE -- PORTFOLIO STRATEGY -- RISK AND RETURN OBJECTIVES

                                  TITLE  68
                            TRUSTS AND FIDUCIARIES
                                  CHAPTER 5
                         UNIFORM PRUDENT INVESTOR ACT
    68-502.  STANDARD OF CARE -- PORTFOLIO STRATEGY -- RISK AND RETURN
OBJECTIVES. (1) A trustee shall invest and manage trust assets as a prudent
investor would, by considering the purposes, terms, distribution requirements
and other circumstances of the trust.  In satisfying this standard, the
trustee shall exercise reasonable care, skill and caution.
    (2)  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.
    (3)  Among circumstances that a trustee shall consider in investing and
managing trust assets are such of the following as are relevant to the trust
or its beneficiaries:
    (a)  General economic conditions;
    (b)  The possible effect of inflation or deflation;
    (c)  The expected tax consequences of investment decisions or strategies;
    (d)  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;
    (e)  The expected total return from income and the appreciation of
    capital;
    (f)  Other resources of the beneficiaries;
    (g)  Needs for liquidity, regularity of income and preservation or
    appreciation of capital; and
    (h)  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.
    (4)  A trustee shall make a reasonable effort to verify facts relevant to
the investment and management of trust assets.
    (5)  A trustee may invest in any kind of property or type of investment
consistent with the standards of this act.
    (6)  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 those special skills or expertise.

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