Kai establishes a trust, naming Loo as the trustee and giving him discretionary investment power. A state statute confines trustees to investments in conservative debt securities. In investing the trust assets, Loo does not follow the statute, but generally exercises the degree of care that a prudent person would exercise in his personal affairs. In this situation, Loo is liable for
A)not complying with the purposes of the trust.
B)none of the choices
C)failing to follow the statute.
D)exercising the same degree of the care as he would in his own affairs.

Question

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The Answer of Kai establishes a trust, naming Loo as the trustee and giving him discretionary investment power. A state statute confines trustees to investments in conservative debt securities. In investing the trust assets, Loo does not follow the statute, but generally exercises the degree of care that a prudent person would exercise in his personal affairs. In this situation, Loo is liable for
A)not complying with the purposes of the trust.
B)none of the choices
C)failing to follow the statute.
D)exercising the same degree of the care as he would in his own affairs.

Kai Establishes a Trust, Naming Loo as the Trustee and Giving