Educational Trusts, Family Trusts, and the Prudent Investor Act

Stockbroker Law - Tuesday, May 10, 2011
Educational Trusts, Family Trusts, and the Prudent Investor Act

Educational Trusts and Family Trusts in New York State are governed by the Prudent Investor Guidelines under §11-2.3 of the Estates, Powers and Trusts law of New York State.  This provision, also known as the Prudent Investor Act, requires that accounts be managed so as to avoid the risk of excessive losses.  Such accounts should be prudently and conservatively managed. 

 

These Rules govern banks and brokerage firms who agree to act as trustees.  Essentially, this law requires that trustees oversee the implementation of a diversified, well-balanced mix of assets and investments, including downside protections in the event of a decline in the financial markets or risks associated with the over-concentration in a specific holding or market sector. 

 

We have represented the interests of trust beneficiaries who have been harmed by imprudent or unlawful trust management and investment advice and offer a free initial consultation to individuals who feel that they have been similarly victimized.

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