Prudent Man Rule and Its Orientation

Prudent Man Rule

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Question

The Prudent Man Rule, as it was originally written, was clearly oriented towards ________.

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D

As enunciated, the concept behind the Prudent Man Rule was clearly oriented towards personal trust accounts. Under this 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.