(760 ILCS 3/902)
Sec. 902. Standard of care; portfolio strategy; risk and return objectives. (a) A trustee has a duty to invest and manage trust assets as a prudent investor would, considering the purposes, terms, distribution requirements, and other circumstances of the trust. This standard requires the exercise of reasonable care, skill, and caution and applies not in isolation, but in the context of the trust portfolio as a whole and as a part of an overall investment strategy that incorporates risk and return objectives reasonably suitable to the trust.
(b) A trustee has a duty to pursue an investment strategy that considers both the reasonable production of income and safety of capital, consistent with the trustee's duty of impartiality and the purposes of the trust. Whether investments are underproductive or overproductive of income shall be judged by the portfolio as a whole and not as to any particular asset.
(c) The circumstances that a trustee may consider in making investment decisions include, without limitation:
(1) the general economic conditions;
(2) the possible effect of inflation or deflation;
(3) the expected tax consequences of investment |
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(4) the role each investment or course of action
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(5) the expected total return including both income
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(6) the duty to incur only reasonable and
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(7) environmental and social considerations;
(8) governance policies of the entities in which the
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(9) needs for liquidity, regularity of income, and
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| preservation or appreciation of capital; and
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(10) an asset's special relationship or value, if
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| any, to the purpose of the trust or to one or more of the beneficiaries.
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(d) In addition to the circumstances listed in subsection (c), a trustee may, but need not, consider related trusts and the assets of beneficiaries known to the trustee when making investment decisions.
(Source: P.A. 101-48, eff. 1-1-20 .)
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