Uniform Trust Code

Article 9. Uniform Prudent Investor Act

General Comment

Because of the widespread adoption of the Uniform Prudent Investor Act, no effort has been made to disassemble and integrate the Uniform Prudent Investor Act into the Uniform Trust Code. States adopting the Uniform Trust Code that have previously enacted the Prudent Investor Act are encouraged to reenact their version of the Prudent Investor Act as Article 9 of the Uniform Trust Code. Reenacting the Uniform Prudent Investor Act as a unit will preserve uniformity with States that have enacted the Uniform Prudent Investor Act in free-standing form.

The Uniform Prudent Investor Act prescribes a series of duties relevant to the investment and management of trust property. The Uniform Trust Code, Article 8 contains duties and powers of a trustee relevant to the investment, administration, and distribution of trust property. There is therefore significant overlap between Article 8 and the Prudent Investor Act. Where the Uniform Prudent Investor Act and Uniform Trust Code are duplicative, enacting jurisdictions are encouraged to enact the Uniform Prudent Investor Act in this article but without the provisions already addressed in Article 8 of the Uniform Trust Code. The duplicative provisions of the Uniform Prudent Investor Act and Article 8 of this Code are as follows:

Deleting these duplicative provisions leaves the following sections of the Uniform Prudent Investor Act for enactment in this article: