{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-781.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-781.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-781.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-781.html"}],"law_id":80791,"edition_id":1,"section_id":80791,"structure_id":14391,"section_number":"64.2-781","catch_line":"Prudent investor rule","history":"1999, c. 772, \u00a7 26-45.3; 2012, c. 614.","full_text":"A\n\nExcept 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.B\n\nThe 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.","order_by":null,"text":{"0":{"id":289613,"text":"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.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":289614,"text":"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.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"ancestry":[{"id":14391,"edition_id":1,"name":"Uniform Prudent Investor Act","identifier":"9","label":"article","depth":4,"order_by":1,"parent_id":12725,"metadata":{},"date_created":"2026-06-26 03:47:58","date_modified":"2026-06-26 03:47:58","permalink":{"id":274685,"object_type":"structure","relational_id":14391,"identifier":"9","token":"64.2\/III\/7\/9","url":"\/64.2\/III\/7\/9\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12725,"edition_id":1,"name":"Uniform Trust Code","identifier":"7","label":"chapter","depth":3,"order_by":1,"parent_id":12724,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":274107,"object_type":"structure","relational_id":12725,"identifier":"7","token":"64.2\/III\/7","url":"\/64.2\/III\/7\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12724,"edition_id":1,"name":"Trusts","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12723,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":273811,"object_type":"structure","relational_id":12724,"identifier":"III","token":"64.2\/III","url":"\/64.2\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12723,"edition_id":1,"name":"Wills, Trusts, and Fiduciaries","identifier":"64.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":272781,"object_type":"structure","relational_id":12723,"identifier":"64.2","token":"64.2","url":"\/64.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":57841,"structure_id":14391,"section_number":"64.2-780","catch_line":"Definition of terms","url":"\/64.2-780\/","token":"64.2\/III\/7\/9\/64.2-780","metadata":false},{"id":80791,"structure_id":14391,"section_number":"64.2-781","catch_line":"Prudent investor rule","url":"\/64.2-781\/","token":"64.2\/III\/7\/9\/64.2-781","metadata":false},{"id":86440,"structure_id":14391,"section_number":"64.2-782","catch_line":"Standard of care; portfolio strategy; risk and return objectives","url":"\/64.2-782\/","token":"64.2\/III\/7\/9\/64.2-782","metadata":false},{"id":61446,"structure_id":14391,"section_number":"64.2-783","catch_line":"Diversification by trustee","url":"\/64.2-783\/","token":"64.2\/III\/7\/9\/64.2-783","metadata":false},{"id":75505,"structure_id":14391,"section_number":"64.2-784","catch_line":"Duties at inception of trusteeship","url":"\/64.2-784\/","token":"64.2\/III\/7\/9\/64.2-784","metadata":false},{"id":55729,"structure_id":14391,"section_number":"64.2-785","catch_line":"Loyalty and impartiality","url":"\/64.2-785\/","token":"64.2\/III\/7\/9\/64.2-785","metadata":false},{"id":78422,"structure_id":14391,"section_number":"64.2-786","catch_line":"Investment costs","url":"\/64.2-786\/","token":"64.2\/III\/7\/9\/64.2-786","metadata":false},{"id":72391,"structure_id":14391,"section_number":"64.2-787","catch_line":"Reviewing compliance","url":"\/64.2-787\/","token":"64.2\/III\/7\/9\/64.2-787","metadata":false},{"id":63912,"structure_id":14391,"section_number":"64.2-788","catch_line":"Delegation of investment and management functions","url":"\/64.2-788\/","token":"64.2\/III\/7\/9\/64.2-788","metadata":false},{"id":81931,"structure_id":14391,"section_number":"64.2-789","catch_line":"Language invoking standard of article","url":"\/64.2-789\/","token":"64.2\/III\/7\/9\/64.2-789","metadata":false},{"id":69448,"structure_id":14391,"section_number":"64.2-790","catch_line":"Application to existing trusts","url":"\/64.2-790\/","token":"64.2\/III\/7\/9\/64.2-790","metadata":false},{"id":74364,"structure_id":14391,"section_number":"64.2-791","catch_line":"Uniformity of application and construction","url":"\/64.2-791\/","token":"64.2\/III\/7\/9\/64.2-791","metadata":false}],"previous_section":{"id":57841,"structure_id":14391,"section_number":"64.2-780","catch_line":"Definition of terms","url":"\/64.2-780\/","token":"64.2\/III\/7\/9\/64.2-780","metadata":false},"next_section":{"id":86440,"structure_id":14391,"section_number":"64.2-782","catch_line":"Standard of care; portfolio strategy; risk and return objectives","url":"\/64.2-782\/","token":"64.2\/III\/7\/9\/64.2-782","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-781\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapter 772<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2012, chapter 614<\/a>.<\/p>","references":[{"id":55439,"section_number":"64.2-1502","catch_line":"In what securities fiduciaries may invest; definitions","order_by":null,"url":"\/64.2-1502\/"}],"refers_to":[{"id":82053,"section_number":"2.2-4519","catch_line":"Investment of funds by the Virginia Housing Development Authority and the Virginia Resources Authority","order_by":null,"url":"\/2.2-4519\/"},{"id":55439,"section_number":"64.2-1502","catch_line":"In what securities fiduciaries may invest; definitions","order_by":null,"url":"\/64.2-1502\/"}],"permalink":{"id":274691,"object_type":"law","relational_id":80791,"identifier":"64.2-781","token":"64.2\/III\/7\/9\/64.2-781","url":"\/64.2-781\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-781\/","token":"64.2\/III\/7\/9\/64.2-781","dublin_core":{"Title":"Prudent investor rule","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-781","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Except as otherwise provided in subsection B or § 2.2-4519<\/a> or 64.2-1502<\/a>, a trustee<\/span> who invests and manages trust<\/span> assets<\/span> owes a duty to the beneficiaries of the trust<\/span> to comply with the prudent investor rule set forth in this article. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The prudent investor rule, a default<\/span> rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust<\/span>. A general authorization in a controlling document<\/span> authorizing a trustee<\/span> to invest in such assets<\/span> as the trustee<\/span>, in his sole discretion, may deem best, or other language purporting to expand the trustee<\/span>’s investment powers, shall not be construed to waive<\/span> the rule of subsection A unless the controlling document<\/span> 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<\/span> 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<\/span> shall not be liable to a beneficiary<\/span> for the trustee<\/span>’s good faith reliance on a waiver<\/span> of the rule of subsection A. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPRUDENT INVESTOR RULE (\u00a7 64.2-781)\n\nA. Except as otherwise provided in subsection B or § 2.2-4519 or 64.2-1502,\na trustee who invests and manages trust assets owes a duty to the beneficiaries\nof the trust to comply with the prudent investor rule set forth in this article.\n\nB. The prudent investor rule, a default rule, may be expanded, restricted,\neliminated, or otherwise altered by the provisions of a trust. A general\nauthorization in a controlling document authorizing a trustee to invest in such\nassets as the trustee, in his sole discretion, may deem best, or other language\npurporting to expand the trustee’s investment powers, shall not be\nconstrued to waive the rule of subsection A unless the controlling document\nexpressly manifests an intention that it be waived (i) by reference to the\n“prudent man” or “prudent investor” rule, (ii) by\nreference to power of the trustee to make “speculative” investments,\n(iii) by an express authorization to acquire or retain a specific asset or type\nof asset such as a closely held business, or (iv) by other language synonymous\nwith clause (i), (ii) or (iii). A trustee shall not be liable to a beneficiary\nfor the trustee’s good faith reliance on a waiver of the rule of\nsubsection A.\n\nHISTORY: 1999, c. 772, \u00a7 26-45.3; 2012, c. 614.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}