The Uniform Prudent Investor Act of the California Probate Code sets forth specific rules regarding the duties and responsibilities of a trustee when managing and investing trust assets. Under the Act, a trustee has a duty to diversify the investment of trust assets and weigh the benefit versus cost when making investment decisions. Cal. Probate Code Section 16047 section (b) specifically states that, “a trustee’s investment and management decisions respecting individual assets and courses of action 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.”
Most trustees are not licensed financial advisors and, do not have the knowledge or experience to be able to make prudent investment decisions. Trustees of a trust with funds held in bank accounts should consider hiring a licensed and experienced financial advisor to assist and guide them through investment decisions. Here at Chauvel and Glatt, we work with trustees and financial advisors to adequately counsel our clients to make decisions that are in the best interest of the trust. To find out how our estate attorneys can assist you, contact us today.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500. (Photo credit: 123rf.com)