In most states, a trustee's investment decisions are usually governed by:

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The prudent investor rule is a legal standard that guides trustees in making investment decisions for trust funds. This rule generally requires trustees to manage trust assets with the care, skill, and caution that a prudent investor would use, taking into account the purposes, terms, distribution requirements, and other circumstances of the trust. In most states, this rule is codified in state law or has been adopted through case law.

In Most States, a Trustee's Investment Decisions Are Usually Governed