The Prudent Investor Rule: Understanding the Rules of Trust Investments
Modern Portfolio Theory generally holds that risk can be reduced and returns protected through diversification across asset classes. The many practical investment implications of MPT inform the Prudent Investor Rule, adopted by most states, and how fiduciaries are required to invest assets. Trustees cannot fulfill their fiduciary obligations under the Prudent Investor Rule unless they understand MPT. This program is designed to be a practical guide to understanding how MPT relates to the Prudent Investor Rule, including avoiding fiduciary liability by establishing processes for evaluating investment decisions, making investment decisions in a highly volatile market, the risks of concentrated positions in family businesses, and choosing the appropriate level of risk for trust investments.
- Understanding Modern Portfolio Theory and how it relates to the Prudent Investor Rule
- Rule of trustee conduct versus investment results
- Choosing the appropriate risk level for trust investments
- Concentrated positions in family businesses
- Special considerations in a volatile market
- Establishing processes to reduce the risk of fiduciary liability
Alvin J. Golden is a senior partner in the Austin, Texas law firm of Ikard & Golden, P.C., where his practice focuses on complex trust and estate planning. A nationally recognized expert in his field, he is a fellow the American College of Trust and Estate Counsel, and has served as a member of its Board of Regents and as the Chair of its Estate and Gift Tax Committee. He is named in both Who’s Who in America and Who’s Who in American Law. Mr. Golden has written extensively and lectured nationwide for major trust and estate conferences. He is a graduate of the University of Texas, where he received his B.B.A. in accounting with honors, and the University of Texas School of Law, where he received his LL.B.
David T. Leibell is a partner in the Stamford, Connecticut office of Wiggin and Dana, LLP, practicing in the Trust and Estates Department. He previously worked in the financial services industry, specializing in the financial aspects of estate planning. Mr. Leibell is a frequent lecturer before fiduciary audiences throughout the United States, and has authored many articles on charitable, estate and tax planning. With Daniel Daniels, he is co-author of a monthly column in Trusts & Estates magazine. He also authors a column for Registered Representative Magazine. Mr. Leibell has been listed in The Best Lawyers in America. Mr. Leibell received his B.A. from Trinity College and his J.D. from Fordham Law School.
