Printable Format58-24a01. Prudent investor rule. (a) Except as otherwise provided in subsection (b), a fiduciary 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 act.
(b) The prudent investor rule, a default rule, may be expanded, restricted, eliminated or otherwise altered by the provisions of a trust. A fiduciary is not liable to a beneficiary to the extent that the fiduciary acted in reasonable reliance on the provisions of the trust.
(c) As used in this act, "fiduciary" means a personal representative or a trustee. The term includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function.
History: L. 2000, ch. 80, ยง 1; July 1.
Law Review and Bar Journal References:
"An Accounting Primer for Estate Planning, Probate and Trust Counsel (The New Kansas Uniform Principal and Income Act)," C. David Newbery and D. Thad Sullivan, 71 J.K.B.A. No. 6, 51 (2002).
"The Kansas Uniform Trust Code," David M. English, 51 K.L.R. 311 (2003).
"Taking the Trust Out of Trustee: The Kansas Supreme Court's Standard for Reasonable Reliance Means Investors Should Proceed Cautiously When Altering the Prudent Investor Rule [McGinley v. Bank of Am., 109 P.3d 1146 (Kan. 2005)]," Justin Whitney, 46 W.L.J. 245 (2006).