{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-782.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-782.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-782.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-782.html"}],"law_id":86440,"edition_id":1,"section_id":86440,"structure_id":14391,"section_number":"64.2-782","catch_line":"Standard of care; portfolio strategy; risk and return objectives","history":"1999, c. 772, \u00a7 26-45.4; 2012, c. 614.","full_text":"A\n\nA 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\n\nA trustee’s investment and management decisions respecting individual assets shall 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\n\nAmong 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\n\nGeneral economic conditions;2\n\nThe possible effect of inflation or deflation;3\n\nThe expected tax consequences of investment decisions or strategies;4\n\nThe 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\n\nThe expected total return from income and the appreciation of capital;6\n\nOther resources of the beneficiaries;7\n\nNeeds for liquidity, regularity of income, and preservation or appreciation of capital; and8\n\nAn asset’s special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.D\n\nA trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.E\n\nA trustee may invest in any kind of property or type of investment consistent with the standards of this article.F\n\nA trustee who has special skills or expertise, or is named trustee in reliance upon the trustee’s representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.G\n\nA trustee may hold any policies of life insurance acquired by gift or pursuant to an express permission or direction in the governing instrument including an authority granted by subdivision B 19 of § 64.2-105 with no duty or need to (i) determine whether any such policy is or remains a proper investment, (ii) dispose of such policy in order to diversify the investments of the trust, or (iii) exercise policy options under any such contract not essential to the continuation of the life insurance provided by such contract. However, apart from these specific authorities, this subsection is not intended and shall not be construed to affect the application of the standard of judgment and care as set forth in this section. This subsection shall apply to all trusts, regardless of when established.","order_by":null,"text":{"0":{"id":309612,"text":"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.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":309613,"text":"A trustee’s investment and management decisions respecting individual assets shall 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.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":309614,"text":"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:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":309615,"text":"General economic conditions;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":309616,"text":"The possible effect of inflation or deflation;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":309617,"text":"The expected tax consequences of investment decisions or strategies;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"6":{"id":309618,"text":"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;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"7":{"id":309619,"text":"The expected total return from income and the appreciation of capital;","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"8":{"id":309620,"text":"Other resources of the beneficiaries;","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"C7"},"9":{"id":309621,"text":"Needs for liquidity, regularity of income, and preservation or appreciation of capital; and","type":"section","prefixes":["C","7"],"prefix":"7","entire_prefix":"C7","prefix_anchor":"C7","level":2,"prior_prefix":"C6","next_prefix":"C8"},"10":{"id":309622,"text":"An asset’s special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.","type":"section","prefixes":["C","8"],"prefix":"8","entire_prefix":"C8","prefix_anchor":"C8","level":2,"prior_prefix":"C7","next_prefix":"D"},"11":{"id":309623,"text":"A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C8","next_prefix":"E"},"12":{"id":309624,"text":"A trustee may invest in any kind of property or type of investment consistent with the standards of this article.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"13":{"id":309625,"text":"A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee’s representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"14":{"id":309626,"text":"A trustee may hold any policies of life insurance acquired by gift or pursuant to an express permission or direction in the governing instrument including an authority granted by subdivision B 19 of § 64.2-105 with no duty or need to (i) determine whether any such policy is or remains a proper investment, (ii) dispose of such policy in order to diversify the investments of the trust, or (iii) exercise policy options under any such contract not essential to the continuation of the life insurance provided by such contract. However, apart from these specific authorities, this subsection is not intended and shall not be construed to affect the application of the standard of judgment and care as set forth in this section. This subsection shall apply to all trusts, regardless of when established.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-782\/","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":false,"refers_to":[{"id":79409,"section_number":"64.2-105","catch_line":"Incorporation by reference of certain powers of fiduciaries into will or trust instrument","order_by":null,"url":"\/64.2-105\/"}],"permalink":{"id":274695,"object_type":"law","relational_id":86440,"identifier":"64.2-782","token":"64.2\/III\/7\/9\/64.2-782","url":"\/64.2-782\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-782\/","token":"64.2\/III\/7\/9\/64.2-782","dublin_core":{"Title":"Standard of care; portfolio strategy; risk and return objectives","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-782","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A trustee<\/span> shall invest and manage trust<\/span> assets<\/span> as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust<\/span>. In satisfying this standard, the trustee<\/span> shall exercise reasonable care, skill, and caution. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A trustee<\/span>’s investment and management decisions respecting individual assets<\/span> shall be evaluated not in isolation but in the context of the trust<\/span> portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Among circumstances that a trustee<\/span> shall consider in investing and managing trust<\/span> assets<\/span> are such of the following as are relevant to the trust<\/span> or its beneficiaries: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> General economic conditions; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The possible effect of inflation or deflation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The expected tax consequences of investment decisions or strategies; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The role that each investment or course of action plays within the overall trust<\/span> portfolio, which may include financial assets<\/span>, interests in closely held enterprises, tangible and intangible personal property<\/span>, and real property<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The expected total return from income and the appreciation of capital; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Other resources of the beneficiaries; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Needs for liquidity, regularity of income, and preservation or appreciation of capital; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> An asset’s special relationship or special value<\/span>, if any, to the purposes of the trust<\/span> or to one or more of the beneficiaries. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A trustee<\/span> shall make a reasonable effort to verify facts<\/span> relevant to the investment and management of trust<\/span> assets<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> A trustee<\/span> may invest in any kind of property<\/span> or type of investment consistent with the standards of this article. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> A trustee<\/span> who has special skills or expertise, or is named trustee<\/span> in reliance upon the trustee<\/span>’s representation that the trustee<\/span> has special skills or expertise, has a duty to use those special skills or expertise. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> A trustee<\/span> may hold any policies of life insurance acquired by gift or pursuant to an express permission or direction in the governing instrument including an authority granted by subdivision B 19 of § 64.2-105<\/a> with no duty or need to (i) determine whether any such policy is or remains a proper investment, (ii) dispose of such policy in order<\/span> to diversify the investments of the trust<\/span>, or (iii) exercise policy options under any such contract<\/span> not essential to the continuation of the life insurance provided by such contract<\/span>. However, apart from these specific authorities, this subsection is not intended and shall not be construed to affect the application of the standard of judgment<\/span> and care as set forth in this section. This subsection shall apply to all trusts<\/span>, regardless of when established. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSTANDARD OF CARE; PORTFOLIO STRATEGY; RISK AND RETURN OBJECTIVES (\u00a7 64.2-782)\n\nA. A trustee shall invest and manage trust assets as a prudent investor would,\nby considering the purposes, terms, distribution requirements, and other\ncircumstances of the trust. In satisfying this standard, the trustee shall\nexercise reasonable care, skill, and caution.\n\nB. A trustee’s investment and management decisions respecting individual\nassets shall be evaluated not in isolation but in the context of the trust\nportfolio as a whole and as a part of an overall investment strategy having risk\nand return objectives reasonably suited to the trust.\n\nC. Among circumstances that a trustee shall consider in investing and managing\ntrust assets are such of the following as are relevant to the trust or its\nbeneficiaries:\n\n 1. General economic conditions;\n\n 2. The possible effect of inflation or deflation;\n\n 3. The expected tax consequences of investment decisions or strategies;\n\n 4. The role that each investment or course of action plays within the overall\n trust portfolio, which may include financial assets, interests in closely held\n enterprises, tangible and intangible personal property, and real property;\n\n 5. The expected total return from income and the appreciation of capital;\n\n 6. Other resources of the beneficiaries;\n\n 7. Needs for liquidity, regularity of income, and preservation or appreciation\n of capital; and\n\n 8. An asset’s special relationship or special value, if any, to the\n purposes of the trust or to one or more of the beneficiaries.\n\nD. A trustee shall make a reasonable effort to verify facts relevant to the\ninvestment and management of trust assets.\n\nE. A trustee may invest in any kind of property or type of investment consistent\nwith the standards of this article.\n\nF. A trustee who has special skills or expertise, or is named trustee in\nreliance upon the trustee’s representation that the trustee has special\nskills or expertise, has a duty to use those special skills or expertise.\n\nG. A trustee may hold any policies of life insurance acquired by gift or\npursuant to an express permission or direction in the governing instrument\nincluding an authority granted by subdivision B 19 of § 64.2-105 with no\nduty or need to (i) determine whether any such policy is or remains a proper\ninvestment, (ii) dispose of such policy in order to diversify the investments of\nthe trust, or (iii) exercise policy options under any such contract not\nessential to the continuation of the life insurance provided by such contract.\nHowever, apart from these specific authorities, this subsection is not intended\nand shall not be construed to affect the application of the standard of judgment\nand care as set forth in this section. This subsection shall apply to all\ntrusts, regardless of when established.\n\nHISTORY: 1999, c. 772, \u00a7 26-45.4; 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}}