ORS 130.755
Prudent investor rule
(1)
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.(2)
A trustee’s investment and management decisions respecting individual assets are not evaluated in isolation, but in the context of the trust portfolio as a whole and as a part of the overall investment strategy having risk and return objectives reasonably suited to the trust.(3)
A trustee shall consider all relevant circumstances in investing and managing trust assets, including any of the following that are relevant to the trust or the beneficiaries of the trust:(a)
General economic conditions;(b)
The possible effect of inflation or deflation;(c)
The expected tax consequences of investment decisions or strategies;(d)
The role that each investment or course of action plays within an overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;(e)
The expected total return from income and the appreciation of capital;(f)
Other resources of the beneficiaries;(g)
Needs for liquidity, regularity of income and preservation or appreciation of capital;(h)
An asset’s special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries;(i)
The intent, desire and personal values of the settlor, including the settlor’s desire to engage in sustainable or socially responsible investment strategies that align with the settlor’s social, environmental, governance or other values or beliefs to the extent known by the trustee; and(j)
The needs of the beneficiaries, including but not limited to the beneficiaries’ personal values and desire that the trustee engage in sustainable or socially responsible investing strategies that align with the beneficiaries’ social, environmental, governance or other values or beliefs, as well as the financial needs of the beneficiaries.(4)
A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.(5)
A trustee may invest in any kind of property or type of investment consistent with the standards of ORS 130.750 (Trustee’s duty to comply with prudent investor rule) to 130.775 (Trust language authorizing investments permitted under prudent investor rule).(6)
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 in investing and managing trust assets. [2005 c.348 §78; 2019 c.546 §2]
Source:
Section 130.755 — Prudent investor rule, https://www.oregonlegislature.gov/bills_laws/ors/ors130.html.
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