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.
More Videos
Have a Question?
Quick Contact
"*" indicates required fields
Recent
Blog Posts
- A Successful Will Contest
- SEC Issues Required Investor Disclosures for Variable Annuities and Variable Life Insurance Contracts
- Airbnb Guest Injuries
- Morgan Stanley Smith Barney Agrees to $5,000,000 Settlement Fund to Benefit Harmed Investors
- Will Contests – Have You Been Shorted by Trickery Involving a Loved One’s Estate?