SB109-SSA1,36,2121 2. The possible effect of inflation or deflation.
SB109-SSA1,36,2222 3. The expected tax consequences of investment decisions or strategies.
SB109-SSA1,36,2523 4. The role that each investment or course of action plays within the overall
24portfolio, which may include financial assets, interests in closely held enterprises,
25tangible and intangible personal property, and real property.
SB109-SSA1,37,1
15. The expected total return from income and the appreciation of capital.
SB109-SSA1,37,22 6. Other resources of the beneficiaries.
SB109-SSA1,37,43 7. Needs for liquidity, regularity of income, and preservation or appreciation
4of capital.
SB109-SSA1,37,65 8. An asset's special relationship or special value to the purposes of the estate,
6trust, conservatorship, or guardianship or to one or more of the beneficiaries.
SB109-SSA1,37,87 (d) A fiduciary shall make a reasonable effort to verify facts relevant to the
8investment and management of assets.
SB109-SSA1,37,109 (e) A fiduciary may invest in any kind of property or type of investment
10consistent with the standards of this section.
SB109-SSA1,37,1311 (f) A fiduciary who has special skills or expertise, or is named fiduciary in
12reliance upon the fiduciary's representation that the fiduciary has special skills or
13expertise, has a duty to use those special skills or expertise.
SB109-SSA1,37,17 14(4) Diversification. A fiduciary shall diversify investments unless the
15fiduciary reasonably determines that, because of special circumstances, the
16purposes of the estate, trust, conservatorship, or guardianship are better served
17without diversifying.
SB109-SSA1,37,23 18(5) Duties at inception. Within a reasonable time after accepting a fiduciary
19appointment or receiving assets, a fiduciary shall review the assets and make and
20implement decisions concerning the retention and disposition of assets, in order to
21bring the portfolio into compliance with the purposes, terms, distribution
22requirements, and other circumstances of the estate, trust, conservatorship, or
23guardianship and with the requirements of this section.
SB109-SSA1,37,25 24(6) Loyalty. A fiduciary shall invest and manage the assets solely in the
25interest of the beneficiaries.
SB109-SSA1,38,3
1(7) Impartiality. If an estate, trust, conservatorship, or guardianship has 2 or
2more beneficiaries, the fiduciary shall act impartially in investing and managing the
3assets, taking into account the differences between the interests of the beneficiaries.
SB109-SSA1,38,6 4(8) Investment costs. In investing and managing assets, a fiduciary may incur
5only costs that are appropriate and reasonable in relation to the assets, the purposes
6of the estate, trust, conservatorship, or guardianship, and the skills of the fiduciary.
SB109-SSA1,38,9 7(9) Reviewing compliance. Compliance with the prudent investor rule is
8determined in light of the facts and circumstances existing at the time of a fiduciary's
9decision or action and not by hindsight.
SB109-SSA1,38,13 10(10) Delegation of investment and management functions. (a) A fiduciary
11may delegate investment and management functions that a prudent fiduciary of
12similar skills could properly delegate under the circumstances. The fiduciary shall
13exercise reasonable care, skill, and caution in all of the following:
SB109-SSA1,38,1414 1. Selecting an agent.
SB109-SSA1,38,1615 2. Establishing the scope and terms of the delegation, consistent with the
16purposes and terms of the estate, trust, conservatorship, or guardianship.
SB109-SSA1,38,1817 3. Periodically reviewing the agent's actions in order to monitor the agent's
18performance and compliance with the terms of the delegation.
SB109-SSA1,38,2119 (b) In performing a delegated function, an agent owes a duty to the estate, trust,
20conservatorship, or guardianship to exercise reasonable care to comply with the
21terms of the delegation.
SB109-SSA1,38,2422 (c) A fiduciary who complies with the requirements of par. (a) is not liable to
23the beneficiaries or to the estate, trust, conservatorship, or guardianship for the
24decisions or actions of the agent to whom a function was delegated.
SB109-SSA1,39,3
1(d) By accepting the delegation of a function from the fiduciary of an estate,
2trust, conservatorship, or guardianship that is subject to the law of this state, an
3agent submits to the jurisdiction of the courts of this state.
SB109-SSA1,39,13 4(11) Phrases invoking standard of this section. The following phrases or
5similar phrases in a will, trust, or court order, unless otherwise limited or modified,
6authorize any investment or strategy permitted under this section: "investments
7permissible by law for investment of trust funds"; "legal investments"; "authorized
8investments"; "using the judgment and care under the circumstances then
9prevailing that persons of prudence, discretion, and intelligence exercise in the
10management of their own affairs, not in regard to speculation but in regard to the
11permanent disposition of their funds, considering the probable income as well as the
12probable safety of their capital"; "prudent man rule"; "prudent trustee rule";
13"prudent person rule"; and "prudent investor rule".
SB109-SSA1,39,20 14(12) Application to existing estates, trusts, conservatorships, and
15guardianships.
This section applies to estates, trusts, conservatorships, and
16guardianships of the estate existing on, or created on or after, the effective date of
17this subsection .... [revisor inserts date]. As applied to estates, trusts,
18conservatorships, and guardianships of the estate existing on the effective date of
19this subsection .... [revisor inserts date], this section governs only decisions or actions
20occurring after that date.
SB109-SSA1,39,24 21(13) Uniformity of application and construction. This section shall be
22applied and construed to effectuate its general purpose to make uniform the law with
23respect to the subject of this section among the states that have enacted this uniform
24legislation.
SB109-SSA1, s. 11 25Section 11. 881.02 of the statutes is amended to read:
SB109-SSA1,40,7
1881.02 Construction; court orders; written instruments. Nothing
2contained in this chapter shall be construed as authorizing any departure from, or
3variation of, the express terms or limitations set forth in any will, agreement, court
4order, or other instrument creating or defining the fiduciary's duties and powers, but
5the terms "legal investment" or "authorized investment" or words of similar import,
6as used in any such instrument, shall be taken to mean any investment which is
7permitted by the terms of this chapter
.
SB109-SSA1, s. 12 8Section 12. 881.06 of the statutes is amended to read:
SB109-SSA1,40,12 9881.06 Law governing existing instruments. This Subject to s. 881.01 (12),
10this
chapter shall govern fiduciaries, including personal representatives, guardians
11of the estate, conservators, and trustees acting under wills, agreements, court
12orders, and other instruments now existing or hereafter made.
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