Oklahoma § 60-175.62 - Standard of care - Portfolio strategy - Risk and return

§ 60-175.62. Standard of care - Portfolio strategy - Risk and return

objectives.

Standard of Care; Portfolio Strategy; Risk and Return

Objectives.

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 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.

C. Among circumstances that a trustee shall consider in

investing and managing trust assets are those of the following as

are relevant to the trust or its beneficiaries:

1. General economic conditions;

2. The possible effect of inflation or deflation;

3. The expected tax consequences of investment decisions or

strategies;

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;

5. The expected total return from income and the appreciation

of capital;

6. Other resources of the beneficiaries;

7. Needs for liquidity, regularity of income, and preservation

or appreciation of capital; and

8. An asset's special relationship or special value, if any, to

the purposes of the trust or to one 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 the Oklahoma Uniform

Prudent Investor Act.

Oklahoma Statutes - Title 60. Property

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.

Added by Laws 1995, c. 351, § 3, eff. Nov. 1, 1995.