SB109,35,6
1701.24 (1) Except as otherwise provided in s. 701.19 (9) (a) and (10), ss. 701.01
2to 701.19, 701.21, 701.22,and 701.23 are applicable to a trust existing on July 1, 1971,
3as well as a trust created after such date and shall govern trustees acting under such
4trusts. If application of any provision of ss. 701.01 to 701.19, 701.21, 701.22 ,and
5701.23 to a trust in existence on August 1, 1971, is unconstitutional, it shall not affect
6application of the provision to a trust created after that date.
SB109, s. 9 7Section 9. 701.24 (2) of the statutes is created to read:
SB109,35,118 701.24 (2) Section 701.20 applies to every trust or decedent's estate existing on
9the effective date of this subsection .... [revisor inserts date], and to every trust or
10decedent's estate created or coming into existence after that date, except as otherwise
11expressly provided in s. 701.20 or by the decedent's will or the terms of the trust.
SB109, s. 10 12Section 10. 861.015 (2) of the statutes is amended to read:
SB109,35,2013 861.015 (2) For purposes of this section, property subject to a directive is valued
14by its clear market value on the date of the decedent's death. Satisfaction of the
15nonholding spouse's marital property interest in the property subject to the directive
16shall be based on that value, plus any income from the property subject to the
17directive after the death of the decedent and before satisfaction. For purposes of
18determining the income from the property subject to a directive, such property shall
19be treated as a legacy or devise of property other than money under s. 701.20 (5) (b)
201
.
SB109, s. 11 21Section 11. 881.01 of the statutes is repealed and recreated to read:
SB109,35,22 22881.01 Uniform prudent investor act. (1) Definition. In this section:
SB109,35,2523 (a) "Beneficiary", with respect to a guardianship of the estate, means a ward
24for whom a guardian of the estate has been appointed and, with respect to a
25conservator, means a person for whose estate a conservator has been appointed.
SB109,36,2
1(b) "Fiduciary" means personal representative, trustee, conservator, or
2guardian of the estate.
SB109,36,5 3(2) Prudent investor rule. (a) Except as otherwise provided in par. (b), a
4fiduciary who invests and manages assets owes a duty to the beneficiaries to comply
5with the prudent investor rule set forth in this section.
SB109,36,96 (b) The prudent investor rule, a default rule, may be expanded, restricted,
7eliminated or otherwise altered by the provisions of a will, trust, or court order. A
8fiduciary is not liable to a beneficiary to the extent that the fiduciary acted in
9reasonable reliance on the provisions of the will, trust, or court order.
SB109,36,14 10(3) Standard of care; portfolio strategy; risk and return objectives. (a) A
11fiduciary shall invest and manage assets as a prudent investor would, by considering
12the purposes, terms, distribution requirements, and other circumstances of the
13estate, trust, conservatorship, or guardianship. In satisfying this standard, the
14fiduciary shall exercise reasonable care, skill, and caution.
SB109,36,1815 (b) A fiduciary's investment and management decisions about individual assets
16shall be evaluated not in isolation but in the context of the portfolio as a whole and
17as a part of an overall investment strategy having risk and return objectives
18reasonably suited to the estate, trust, conservatorship, or guardianship.
SB109,36,2119 (c) Among circumstances that a fiduciary shall consider in investing and
20managing assets are those of the following that are relevant to the estate, trust,
21conservatorship, or guardianship or its beneficiaries:
SB109,36,2222 1. General economic conditions.
SB109,36,2323 2. The possible effect of inflation or deflation.
SB109,36,2424 3. The expected tax consequences of investment decisions or strategies.
SB109,37,3
14. The role that each investment or course of action plays within the overall
2portfolio, which may include financial assets, interests in closely held enterprises,
3tangible and intangible personal property, and real property.
SB109,37,44 5. The expected total return from income and the appreciation of capital.
SB109,37,55 6. Other resources of the beneficiaries.
SB109,37,76 7. Needs for liquidity, regularity of income, and preservation or appreciation
7of capital.
SB109,37,98 8. An asset's special relationship or special value to the purposes of the estate,
9trust, conservatorship, or guardianship or to one or more of the beneficiaries.
SB109,37,1110 (d) A fiduciary shall make a reasonable effort to verify facts relevant to the
11investment and management of assets.
SB109,37,1312 (e) A fiduciary may invest in any kind of property or type of investment
13consistent with the standards of this section.
SB109,37,1614 (f) A fiduciary who has special skills or expertise, or is named fiduciary in
15reliance upon the fiduciary's representation that the fiduciary has special skills or
16expertise, has a duty to use those special skills or expertise.
SB109,37,20 17(4) Diversification. A fiduciary shall diversify investments unless the
18fiduciary reasonably determines that, because of special circumstances, the
19purposes of the estate, trust, conservatorship, or guardianship are better served
20without diversifying.
SB109,38,2 21(5) Duties at inception. Within a reasonable time after accepting a fiduciary
22appointment or receiving assets, a fiduciary shall review the assets and make and
23implement decisions concerning the retention and disposition of assets, in order to
24bring the portfolio into compliance with the purposes, terms, distribution

1requirements, and other circumstances of the estate, trust, conservatorship, or
2guardianship and with the requirements of this section.
SB109,38,4 3(6) Loyalty. A fiduciary shall invest and manage the assets solely in the
4interest of the beneficiaries.
SB109,38,7 5(7) Impartiality. If an estate, trust, conservatorship, or guardianship has 2 or
6more beneficiaries, the fiduciary shall act impartially in investing and managing the
7assets, taking into account the differences between the interests of the beneficiaries.
SB109,38,10 8(8) Investment costs. In investing and managing assets, a fiduciary may incur
9only costs that are appropriate and reasonable in relation to the assets, the purposes
10of the estate, trust, conservatorship, or guardianship, and the skills of the fiduciary.
SB109,38,13 11(9) Reviewing compliance. Compliance with the prudent investor rule is
12determined in light of the facts and circumstances existing at the time of a fiduciary's
13decision or action and not by hindsight.
SB109,38,17 14(10) Delegation of investment and management functions. (a) A fiduciary
15may delegate investment and management functions that a prudent fiduciary of
16similar skills could properly delegate under the circumstances. The fiduciary shall
17exercise reasonable care, skill, and caution in all of the following:
SB109,38,1818 1. Selecting an agent.
SB109,38,2019 2. Establishing the scope and terms of the delegation, consistent with the
20purposes and terms of the estate, trust, conservatorship, or guardianship.
SB109,38,2221 3. Periodically reviewing the agent's actions in order to monitor the agent's
22performance and compliance with the terms of the delegation.
SB109,38,2523 (b) In performing a delegated function, an agent owes a duty to the estate, trust,
24conservatorship, or guardianship to exercise reasonable care to comply with the
25terms of the delegation.
SB109,39,3
1(c) A fiduciary who complies with the requirements of par. (a) is not liable to
2the beneficiaries or to the estate, trust, conservatorship, or guardianship for the
3decisions or actions of the agent to whom a function was delegated.
SB109,39,64 (d) By accepting the delegation of a function from the fiduciary of an estate,
5trust, conservatorship, or guardianship that is subject to the law of this state, an
6agent submits to the jurisdiction of the courts of this state.
SB109,39,16 7(11) Phrases invoking standard of this section. The following phrases or
8similar phrases in a will, trust, or court order, unless otherwise limited or modified,
9authorize any investment or strategy permitted under this section: "investments
10permissible by law for investment of trust funds"; "legal investments"; "authorized
11investments"; "using the judgment and care under the circumstances then
12prevailing that persons of prudence, discretion, and intelligence exercise in the
13management of their own affairs, not in regard to speculation but in regard to the
14permanent disposition of their funds, considering the probable income as well as the
15probable safety of their capital"; "prudent man rule"; "prudent trustee rule";
16"prudent person rule"; and "prudent investor rule".
SB109,39,23 17(12) Application to existing estates, trusts, conservatorships, and
18guardianships.
This section applies to estates, trusts, conservatorships, and
19guardianships of the estate existing on, or created on or after, the effective date of
20this subsection .... [revisor inserts date]. As applied to estates, trusts,
21conservatorships, and guardianships of the estate existing on the effective date of
22this subsection .... [revisor inserts date], this section governs only decisions or actions
23occurring after that date.
SB109,40,2 24(13) Uniformity of application and construction. This section shall be
25applied and construed to effectuate its general purpose to make uniform the law with

1respect to the subject of this section among the states that have enacted this uniform
2legislation.
SB109, s. 12 3Section 12. 881.02 of the statutes is amended to read:
SB109,40,10 4881.02 Construction; court orders; written instruments. Nothing
5contained in this chapter shall be construed as authorizing any departure from, or
6variation of, the express terms or limitations set forth in any will, agreement, court
7order, or other instrument creating or defining the fiduciary's duties and powers, but
8the terms "legal investment" or "authorized investment" or words of similar import,
9as used in any such instrument, shall be taken to mean any investment which is
10permitted by the terms of this chapter
.
SB109, s. 13 11Section 13. 881.06 of the statutes is amended to read:
SB109,40,15 12881.06 Law governing existing instruments. This Subject to s. 881.01 (12),
13this
chapter shall govern fiduciaries, including personal representatives, guardians
14of the estate, conservators, and trustees acting under wills, agreements, court
15orders, and other instruments now existing or hereafter made.
SB109,40,1616 (End)
Loading...
Loading...