Senate bill 447 management of funeral trust accounts. Article 9 uniform prudent investor act 2015 kansas. The prudent investor rule is a test of conduct and not of resulting performance. The impossible dream or a match made in heaven spokane estate planning council spokane, washington may 12, 2015 gary l. This concept has been codified in the 1994 uniform prudent investor act. A this section may be cited as the south carolina uniform prudent investor act, or this act.
This legislation was part of the 2003 legislative package of the real estate, probate and trust law section of the state bar. Nypmifa new yorks version of the uniform prudent management of institutional funds act upmifa governs the management and investment of funds held by notforprofit corporations and other institutions. Office of the revisor of statutes 7 state house station state house room 108 augusta, maine 043330007. A close look at the law governing endowment funds inside. The prudent man rule stated that a trust fiduciary was required to invest trust assets as a prudent man would invest his own assets. A number of developments, including the enactment of the uniform principal and income act upia and the new york prudent management of. The uniform prudent investor act upia undertakes to update trust investment law in recognition of the alterations that have occurred in investment practice. Added to nrs by 2003, 1967 nrs 16 administration of trust or estate by fiduciary in accordance with its terms or in accordance with provisions of nrs. The comments to the uniform prudent investor act states in no uncertain. Flotron, mba, clu, chfc, aep university of missouri st.
As of may 2015, 44 states and the district of columbia have adopted parts of the act. It replaces and updates key provisions of the uniform. Uniform prudent management of institutional funds act 4701 short title. Chapter 2 the uniform prudent investor act with comments page 5 introduction the 78th texas legislature enacted a texas version of the uniform prudent investor act of 1994. The prudent person standard is also found in the uniform prudent investor act and unitrust, 14a vt. Court of appeals of indiana opinion 49a051403tr142. Minnesota office of the revisor of statutes, 700 state office building, 100 rev. The heart of the prudent investor rule is the requirement that a trustee.
Requires an investment adviser managing a funeral trust settlors account to comply with the indiana uniform prudent investor act. While there can be some variations between states, the main principles of fiduciary duty are relatively consistent. Uniform law commission the uniform law commission ulc, also known as the national conference of commissioners on uniform state laws, established in 1892, provides states with nonpartisan, wellconceived and welldrafted legislation that brings clarity and stability to critical areas of state statutory law. This subsection establishes a somewhat higher standard for professional fiduciaries or anyone with special skill or expertise.
Dated november 16, 2015 adapted from the uniform trust code. Subchapter 9 uniform prudent investor act 2015 kentucky. Prefatory note over the quarter century from the late 1960s the investment practices of fiduciaries experienced significant change. Feb 19, 2015 requires that the third party be an investment adviser registered with the united states securities and exchange commission or with the indiana securities commissioner. See uniform prudent investor act, section 3 a trustee shall diversify the investments ofthe trust unless the trustee reasonably determines that, because of special circumstances, the purposes ofthe trust are better served without diversifying. The revisors office cannot provide legal advice or interpretation of maine law to the public. The prudent investor rule, enacted in every state over the last 30 years, is the. Justia us law us codes and statutes kentucky revised statutes 2015 kentucky revised statutes chapter 386b uniform trust code subchapter 9 uniform prudent investor act 9. The uniform prudent investor act upia, which was adopted in 1992 by the american law institutes third restatement of the law of trusts restatement of trust 3d, reflects a modern portfolio theory and total return approach to the exercise of fiduciary investment discretion. The uniform prudent investor act upia imposes a duty on all trusteesfiduciaries to manage, monitor, and evaluate assets and investments under their care for the benefit of the beneficiaries of the trust, a duty which also applies to trustowned life insurance toli. Scott simon the 1995 enactment of the california version of the uniform prudent investor act upia prob c 16002a, 16003, 1604516054 has caused estate planning attorneys to give increased attention to the obligations of trustees investing in publicly traded securities.
Title 12 decedents estates and fiduciary relations fiduciary relations chapter 47. Another key set of regulations includes the uniform prudent investor act upia, the uniform prudent management of institutional funds act upmifa,14 the management of public employee retirement systems act upersa,15 and the uniform principal and income act. Therefore, any reference to uniform trust code sec. Satisfying fiduciary requirements of the uniform prudent i. Within this chapter, the kansas system utilized the uniform trust code section number those digits following the dash as a part of the kansas citation. Mar 10, 2015 a close look at the law governing endowment funds march 10, 2015 frank monti the uniform prudent management of institutional funds act, or upmifa, is a complex law that holds sway in almost every state in the nation. Uniform prudent investor act and interpretations of private pension fund law under the employee retirement income and security act erisa. American journal of business education second quarter 2015. The uniform prudent investor act upia undertakes to update trust investment law in recognition of the alterations. Colorado revised statutes 2015 general index a to z.
Californias adoption of the uniform prudent investor act and the uniform principal and income act the upias liberated trustees from slavish adherence to. B1 except as otherwise provided in item 2 of this subsection, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule in this act. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. The prudent trustee rule the uniform prudent investor act upia requires trustees of irrevocable life insurance trusts ilits to maximize benefits and minimize costs of life insurance policies held in trust on behalf of trust beneficiaries. For the trusteebeneficiary relationship, the uniform prudent investor act upia was adopted in 1992 by the american law institute, a body aimed at clarifying and restating american common law. If you need legal advice, please consult a qualified attorney. Except as otherwise provided in subsection 2, 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 sections 591602, 591603, 591605, 591606, and 591607 and in this. Responsible investing for the modern fiduciary northern trust. This article, together with subdivision a of section 16002 and section 16003, constitutes the prudent investor rule and may be cited as the uniform prudent investor act. This chapter may be cited as the uniform prudent management of institutional funds act. Guzman l introduction a trust is the severance of legal and equitable title to certain property, permitting the trustee to manage and invest those assets on behalf of the trusts beneficiaries. There was no mention of, or interest in, growth of. Colorado revised statutes 2015 5 uncertified printout uniform fiduciaries law, 151101 to 1511110. Legislating the normative environment may 2015 4 significantly, although the uniform prudent investor act was created to apply to assets held in trust form, the drafters anticipated that the law would, if successful, create an aura that would lead to its being applied to other types of charitable investment as well.
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