Vermont § 902 - Standard of care; portfolio strategy; risk and return objectives

§ 902. 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 such 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 this chapter. (Added 2009, No. 20, § 1.)