§ 4-10-902 — Standard of care; portfolio strategy; risk and return objectives

Wyoming § 4-10-902

• Jurisdiction: Wyoming
• Title 04: Fiduciaries
• Ch. 10: UNIFORM TRUST CODE
• Art. 9: UNIFORM PRUDENT INVESTOR ACT

Text

(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.
(b) A trustee's investment and management decisions
respecting individual assets shall 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.
(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:
(i) General economic conditions;
(ii) The possible effect of inflation or deflation;
(iii) The expected tax consequences of investment
decisions or strategies;
(iv) 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;
(v) The expected total return from income and the
appreciation of capital;
(vi) Other resources of the beneficiaries;
(vii) Needs for liquidity, regularity of income and
preservation or appreciation of capital; and
(viii) 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.
(d) A trustee shall make a reasonable effort to verify
facts relevant to the investment and management of trust assets.
(e) A trustee may invest in any kind of property or type
of investment consistent with the standards of this article.
(f) 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.
(g) Notwithstanding the foregoing provisions of this
section, a trustee who discloses the application of this
subsection and the limitation of the trustee's duties it
provides either in the trust instrument or in a separate writing
delivered to each insured at the inception of a life insurance
contract or thereafter, if the disclosure is prior to an event
giving rise to a claim thereunder, may acquire or retain a life
insurance contract upon the life of the settlor or the settlor's
spouse, or both, without liability for a loss arising from the
trustee's failure to perform any of the following duties, unless
the trust instrument states or limits otherwise:
(i) Determine whether the contract is or remains a
proper investment;
(ii) Investigate the financial strength or changes in
the financial strength of the life insurance company;
(iii) Make a determination of whether to exercise any
policy option available under the contract;
(iv) Make a determination of whether to diversify the
contracts relative to one another or to other assets, if any,
administered by the trustee; or
(v) Inquire about changes in the health or financial
condition of the insured or insureds relative to a contract.