Trustee Investments (Portfolio 861)

Description

Tax Management Portfolio, Trustee Investments, No. 861, provides detailed coverage of the rules governing the different types of investments available to trustees, some basic income tax consequences of those investments, and some of the economic theory behind investing. It discusses the laws applicable to trustees when investing trust assets.

The Detailed Analysis provides comprehensive coverage of the principles of investing enumerated in the Restatement (Third) of Trusts: Prudent Investor Rule (1992), the Uniform Prudent Investor Act (1994), the Uniform Principal and Income Act (2000), as well as changes to the income tax definition of “income” and “principal.” This analysis includes a discussion of the extent to which trustees are required to diversify their investments and notify beneficiaries of those investments, and how to manipulate those investments in order to exercise the trustee’s duty of loyalty to the beneficiaries. It sets forth some criteria for the creation by the trustee of an investment plan that takes into consideration all of the requirements discussed in the analysis.

This portfolio may be cited as Cline, 861 T.M., Trustee Investments.

Table of Contents

I. Introduction
II. Defining “Investments”
III. Income Tax Consequences of Investments
IV. Basics of Economic Theory of Investments
V. Restatement (Third) of Trusts: Prudent Investor Rule
VI. The Uniform Prudent Investor Act
VII. The Uniform Principal and Income Act
VIII. Changes to the Income Tax Definition of “Income”
IX. The Total Return Trust
X. Drafting Suggestions
XI. Developing the Investment Plan