Virginia Code 64.2-781: Prudent investor rule
A. Except as otherwise provided in subsection B or § 2.2-4519 or 64.2-1502, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this article.
Terms Used In Virginia Code 64.2-781
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Controlling document: means the will, agreement, power of attorney, court order, or other instrument creating the fiduciary powers. See Virginia Code 64.2-780
- Trust: includes the assets under the control or management of the trustee. See Virginia Code 64.2-780
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes any fiduciary as defined in § 8. See Virginia Code 64.2-780
B. The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A general authorization in a controlling document authorizing a trustee to invest in such assets as the trustee, in his sole discretion, may deem best, or other language purporting to expand the trustee’s investment powers, shall not be construed to waive the rule of subsection A unless the controlling document expressly manifests an intention that it be waived (i) by reference to the “prudent man” or “prudent investor” rule, (ii) by reference to power of the trustee to make “speculative” investments, (iii) by an express authorization to acquire or retain a specific asset or type of asset such as a closely held business, or (iv) by other language synonymous with clause (i), (ii) or (iii). A trustee shall not be liable to a beneficiary for the trustee’s good faith reliance on a waiver of the rule of subsection A.