The Prudent Man Rule and the Equitable Balance: Understanding Trustee Responsibilities

Achieving an Equitable Balance: The Prudent Man Rule and Trustee Responsibilities

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Question

The Prudent Man Rule states that the trustee must achieve an equitable balance between current income and the ________ of principal in ________.

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Explanations

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Explanation

Under the Prudent Man Rule, trustees must be impartial between income beneficiaries and remainder men and must achieve an equitable balance between current income and the preservation of principal in real terms.