3B:20-11.2 - Compliance by fiduciary with prudent investor rule - New Jersey Statutes

3B:20-11.2  Compliance by fiduciary with prudent investor rule2.  a.  Except as provided in subsection b. of this section, a fiduciary who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule, as set forth in this act.

b.  The prudent investor rule is a default rule that may be expanded, restricted, eliminated, or otherwise altered by express provisions of the trust instrument.  A fiduciary is not liable to a beneficiary to the extent that the fiduciary acted in reasonable reliance on those express provisions.  Nothing herein shall affect the jurisdiction of the Superior Court to order or authorize a fiduciary to deviate from the express terms or provisions of a trust instrument for the causes, in the manner, and to the extent otherwise provided by law.

L.1997,c.26,s.2.