The Uniform Prudent Investor Act has been adopted in New Hampshire as the New Hampshire Trust Code.

2019 New Hampshire Revised Statutes

Title LVI – Probate Courts and Decedents’ Estates

Chapter 564-B – New Hampshire Trust Code

Section 564-B:9-901 – Prudent Investor Rule.


564-B:9-901 Prudent Investor Rule. – (a) Except as otherwise provided in subsection (b), 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 chapter. (b) The prudent investor rule may be expanded, restricted, eliminated, or otherwise altered by the terms of the trust except as provided in RSA 564-B:1-105(b)(2) and (3). A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provisions of the trust or court order or determined not to diversify the investments of a trust in good faith in reliance on the express terms of the trust or a court order or pursuant to RSA 564-B:9-903.
Source. 2004, 130:1. 2005, 270:31. 2006, 320:66, eff. Aug. 19, 2006.

564-B:9-902 Standard of Care; Portfolio Strategy; Risk and Return Objectives. – (a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. (b) A trustee’s investment and management decisions respecting individual assets must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust. (c) Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries: (1) general economic conditions; (2) the possible effect of inflation or deflation; (3) the expected tax consequences of investment decisions or strategies; (4) the role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property; (5) the expected total return from income and the appreciation of capital; (6) other resources of the beneficiaries; (7) any other trust if one or more of the beneficiaries also are beneficiaries of that trust; (8) needs for liquidity, regularity of income, and preservation or appreciation of capital; and (9) an asset’s special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries. (d) A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets. For purposes of subsections (c)(6) and (c)(7), the trustee has a duty to investigate the relevant information and a duty to monitor the relevant information, and the trustee is not liable to any person to the extent that the trustee performs those duties in good faith and, in accordance with this section, considers the information that the trustee obtains through the good faith performance of those duties. (e) A trustee may invest in any kind of property or type of investment consistent with the standards of this chapter.
Source. 2004, 130:1, eff. Oct. 1, 2004. 2014, 195:27, 40, eff. July 1, 2014.

564-B:9-903 Diversification. – A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.
Source. 2004, 130:1, eff. Oct. 1, 2004.

564-B:9-904 Duties at Inception of Trusteeship. – Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this chapter.
Source. 2004, 130:1, eff. Oct. 1, 2004.

564-B:9-905 Reviewing Compliance. – (a) Compliance with the prudent investor rule is determined: (1) in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight; and (2) by the trustee’s conduct and not by the return realized from the investment and management of the trust assets. (b) A trustee’s failure to realize a return that equals or exceeds any financial index is not evidence of a trustee’s failure to comply with the prudent investor rule.
Source. 2004, 130:1, eff. Oct. 1, 2004. 2014, 195:28, eff. July 1, 2014.

564-B:9-906 Language Invoking Standard of Article. – The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this article: “investments permissible by law for investment of trust funds,” “legal investments,” “authorized investments,’ ‘ “using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital,” “prudent man rule,” “prudent trustee rule,” “prudent person rule,” and “prudent investor rule.”

564-B:9-907 Governing Law. – The provisions of article 9 of this code shall be construed as pertaining to the administration of a trust and as applicable to any trust that is administered in this state or that is governed by the laws of this state.
Source. 2008, 374:17, eff. Sept. 9, 2008.

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