RSA 564-B:9-902 · Standard of Care; Portfolio Strategy; Risk and Return Objectives

564-B:9-902 Standard of Care; Portfolio Strategy; Risk and Return Objectives. –

Copy link

(a)

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.

Copy link

(b)

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.

Copy link

(c)

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:

Copy link

(1)

general economic conditions;

Copy link

(2)

the possible effect of inflation or deflation;

Copy link

(3)

the expected tax consequences of investment decisions or strategies;

Copy link

(4)

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;

Copy link

(5)

the expected total return from income and the appreciation of capital;

Copy link

(6)

other resources of the beneficiaries;

Copy link

(7)

any other trust if one or more of the beneficiaries also are beneficiaries of that trust;

Copy link

(8)

needs for liquidity, regularity of income, and preservation or appreciation of capital;

Copy link

(9)

an asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries; and

Copy link

(10)

unless contrary to settlor intent or otherwise prohibited by RSA 564-B:1-111(c), for a trust not subject to RSA 292-B, the expressed wishes of the interested persons of the trust, including where applicable the director of charitable trusts as described in RSA 564-B:1-111(a), as reflected in a nonjudicial settlement agreement pursuant to RSA 564-B:1-111, to have the trustee, trust advisor, or trust protector engage in investing strategies that align with the interested persons' social, environmental, or governance objectives or other values or beliefs of the interested persons, regardless of investment performance.

Copy link

(d)

A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets. For purposes of subsections (c)(6) and (c)(7), the trustee has a duty to investigate the relevant information and a duty to monitor the relevant information, and the trustee is not liable to any person to the extent that the trustee performs those duties in good faith and, in accordance with this section, considers the information that the trustee obtains through the good faith performance of those duties.

Copy link

(e)

A trustee may invest in any kind of property or type of investment consistent with the standards of this chapter. Source. 2004, 130:1, eff. Oct. 1, 2004. 2014, 195:27, 40, eff. July 1, 2014. 2021, 103:5, eff. Aug. 30, 2021.

Copy link