Blog 
Trust Litigation & Probate Litigation
- Six Steps for Proving Fraud When Contesting a California Will
- California Will Fraud: What Happens When Your Loved One Was Victimized
- San Diego Probate Lawyer: Shifting the Burden of Proof
- Where to Look for Trust Mistakes, by a San Diego Probate Attorney
- San Diego Probate Attorney Asks: Who’s the Boss?
Probate and Trust Administration
- What Remedies Are Available After California Trustee Theft?
- Riverside Trust Attorney: Trustee’s Obligations to Provide Notice
- San Diego Trust Lawyer: How to Obtain an Appointment as Administrator
- Riverside Trust Lawyer: Obtaining an Appointment as Executor
- Don’t Make These Trustee Mistakes, Says Riverside Probate Attorney
General
News
Tupac Coachella Image Raises California Estate Administration Issues...
Posted on 5/4/2012
California Lawsuit Against Executor of Famous Producer’s Estate Fails...
Posted on 4/13/2012
California Beneficiary Wins Award of Nearly 20 Million Against Trustee...
Posted on 4/3/2012
Whitney Houston Estate Administration “Straightforward”...
Posted on 3/26/2012
Singer Etta James Dies at 73; $1 Million Estate Possibly in Probate...
Posted on 2/4/2012
New 2012 Legislation AB 1305 Impacts California Probate...
Posted on 1/17/2012
Estate Planning and Incapacitating Chronic Illness in California...
Posted on 11/16/2011
California Raises Limit For Small Estates Procedure to $150,000...
Posted on 11/2/2011
The Simplified Procedure to Transfer Estates in California...
Posted on 11/1/2011
What Does A California Transfer Agent Do?...
Posted on 10/24/2011
Library
Probate and Trust Administration
- What to Do When a San Diego Trustee Steals from the Estate
- San Diego Trust Lawyer: Understanding the Role of the Administrator
- Riverside Trust Attorney: Ten Steps to for a Successor Trustee to Take
- Riverside Trust Lawyer Describes the Duties of an Executor
- Riverside Probate Attorney on Duress: Why Trusts Get Attacked, Part 2
San Diego Probate Attorneys Explain the Prudent Investor Rule
Trust investment is where trustees tend to make the most mistakes.
Ironically, mistakes in trust investment, as well as the resulting liability, are extremely easy to avoid.
Every California trustee is required to comply with the Prudent Investor Rule. According to the rule, a trustee must make investment and money management decisions as part of an overall strategy intended to build assets for the beneficiaries of the trust.
The Prudent Investment Rule is process-driven, meaning that a trustee is judged on his or her investment strategy, not the actual outcome of the real investments.
The trustee is expected to demonstrate the same skills that a professional investor would, taking the terms, distribution requirements, and other circumstances of the trust into consideration. They are expected to build an investment strategy at a level of risk and a return that is appropriately suited to the trust.
Factors taken into consideration when evaluating a trustee’s adherence to the Prudent Investment Rule include:
- General economic environment
- Potential consequences of inflation or deflation
- Tax-related considerations of investment strategies
- The role of each investment in the overall trust portfolio
- Expected total return from income
- Appreciation of capital
- Other resources beneficiaries have available to them as communicated to trustee
- Provision of necessary income, payment obligations, or the preservation of capital
- Assets of a nature that have a heightened priority to one or more of the beneficiaries or the trust itself
It is not necessary to have utilized all these factors in making an investment decision, but at least one of them should be an apparent priority in your decision making process.
The trustee is responsible for the best interests of the beneficiaries and is therefore held to a professional-level standard of judgment for investment decisions. Because of this, most non-professional trustees are well served to protect themselves with the services of a professional financial advisor, especially in the case of long-term administrations. If you are already working with an attorney, then they will likely be able to refer you to an advisor who understands your needs.
Are you a California trustee with questions about your liability in trust investment? The San Diego probate attorneys at The Grossman Law Firm offer San Diego trust administration, will contests, trust litigation, and probate services. For a confidential and no-charge 30-minute consultation with one of our attorneys, call us toll-free at 888-443-6590 today. To reach us online, use our quick contact form above.
Also be sure to request your copy of Grossman’s must-read book and DVD Probate a Will or Administer a Trust After the Death of a Loved One, which is available to you FREE.
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San Diego Office
525 B St
Suite 1500
San Diego, CA 92101
Phone: (760) 440-9847
Fax: (619) 764-4091
Toll Free: (888) 443-6590
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Riverside Office
6370 Magnolia Avenue
Suite 320
Riverside, CA 92506
Phone: (951) 683-3704
Fax: (951) 683-3948
Toll Free: (888) 443-6590
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Temecula Office
43537 Ridge Park Drive
Suite 101
Temecula, CA 92590
Phone: (951) 461-8874
Fax: (951) 683-3948
Toll Free: (888) 443-6590
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Videos
Trust Litigation & Probate Litigation:
Obtaining a Copy of a Trust in San Diego
How To Get a Copy of a Trust in Riverside, CA
Probate and Trust Administration:
How Much Does Probate Cost in Temecula, California?
How Much Does Probate Cost in San Diego?
FAQs
Trust Litigation & Probate Litigation
- Do I have a right to see a copy of a California trust if I am a beneficiary?
- What do I do if my parent had a previously executed California Will, but I think someone changed it?
- The California trustee mismanaged the estate. What should I do?