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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>80791</law_id><section_number>64.2-781</section_number><catch_line>Prudent investor rule</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>64.2-1502</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="64.2">Wills, Trusts, and Fiduciaries</unit><unit label="subtitle" level="2" order_by="1" identifier="III">Trusts</unit><unit label="chapter" level="3" order_by="1" identifier="7">Uniform Trust Code</unit><unit label="article" level="4" order_by="1" identifier="9">Uniform Prudent Investor Act</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> Except as otherwise provided in subsection B or &#xA7; <a class="law" title="Investment of funds by the Virginia Housing Development Authority and the Virginia Resources Authority" href="/2.2-4519/">2.2-4519</a> or <a class="law" title="In what securities fiduciaries may invest; definitions" href="/64.2-1502/">64.2-1502</a>, a <span class="dictionary">trustee</span> who invests and manages <span class="dictionary">trust</span> <span class="dictionary">assets</span> owes a duty to the beneficiaries of the <span class="dictionary">trust</span> to comply with the prudent investor rule set forth in this article. <a id="paragraph-289613" class="section-permalink" href="https://vacode.org/64.2-781/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> The prudent investor rule, a <span class="dictionary">default</span> rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a <span class="dictionary">trust</span>. A general authorization in a <span class="dictionary">controlling document</span> authorizing a <span class="dictionary">trustee</span> to invest in such <span class="dictionary">assets</span> as the <span class="dictionary">trustee</span>, in his sole discretion, may deem best, or other language purporting to expand the <span class="dictionary">trustee</span>&#x2019;s investment powers, shall not be construed to <span class="dictionary">waive</span> the rule of subsection A unless the <span class="dictionary">controlling document</span> expressly manifests an intention that it be waived (i) by reference to the &#x201C;prudent man&#x201D; or &#x201C;prudent investor&#x201D; rule, (ii) by reference to power of the <span class="dictionary">trustee</span> to make &#x201C;speculative&#x201D; 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 <span class="dictionary">trustee</span> shall not be liable to a <span class="dictionary">beneficiary</span> for the <span class="dictionary">trustee</span>&#x2019;s good faith reliance on a <span class="dictionary">waiver</span> of the rule of subsection A. <a id="paragraph-289614" class="section-permalink" href="https://vacode.org/64.2-781/#B"><i class="fa fa-link"/></a></p></section></text><history>1999, c. 772, &#xA7; 26-45.3; 2012, c. 614.</history><metadata></metadata></law>
