§ 59-17-02 — Standard of care - Portfolio strategy - Risk and return objectives

North Dakota § 59-17-02

• Jurisdiction: North Dakota
• Title 59: Trusts, Uses, and Powers
• Ch. 59-17: Prudent Investor Standards

Text

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 a trustee shall consider in investing and managing trust assets
are any of the following that 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 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 title.