Part I of this article presents a brief history of the prudent man standard and explores the meaning of "prudence." Part II discusses the shift in legal theory to include equities as prudent investments. Part III articulates the weaknesses in the method currently used by courts to assess investment prudence in view of the exigencies confronting today's trustee-investor. Finally, part IV shows that the same factors which justified the creation of the Prudent Man Rule and its expansion to include equities will support its modification to encompass modern investment theories and techniques.
Thomas D. Johnston,
Prudence in Trust Investment,
U. Mich. J. L. Reform
Available at: https://repository.law.umich.edu/mjlr/vol8/iss3/4