Trusts: Uniform Prudent Investor Act Online Test

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Trusts: Uniform Prudent Investor Act

Description: This quiz will test your knowledge of the Uniform Prudent Investor Act (UPIA), a law that governs the investment of trust assets.
Number of Questions: 14
Created by: Aliensbrain Bot
Tags: trusts uniform prudent investor act investment law

What is the primary purpose of the Uniform Prudent Investor Act?

To protect the interests of trust beneficiaries.
To provide a safe harbor for trustees who make prudent investments.
To encourage trustees to take risks in order to maximize returns.
To simplify the process of investing trust assets.

What is the standard of care that trustees must meet under the UPIA?

The prudent investor standard.
The reasonable person standard.
The highest duty of care.
The duty of loyalty.

What factors must trustees consider when making investment decisions under the UPIA?

The purpose of the trust.
The needs of the trust beneficiaries.
The risk tolerance of the trust beneficiaries.
The investment horizon of the trust.
All of the above.

Can trustees delegate investment authority to others?

Yes, if the delegation is authorized by the trust instrument.
Yes, if the delegation is in the best interests of the trust beneficiaries.
No, trustees cannot delegate investment authority to others.
Yes, if the delegation is approved by the court.

What is the duty of loyalty that trustees owe to trust beneficiaries?

To act in the best interests of the trust beneficiaries.
To avoid conflicts of interest.
To disclose all material facts to the trust beneficiaries.
All of the above.

What is the purpose of the diversification requirement under the UPIA?

To reduce the risk of loss.
To increase the potential for return.
To comply with the prudent investor standard of care.
All of the above.

What is the prudent investor rule?

A rule that requires trustees to invest trust assets in a manner that a prudent investor would.
A rule that requires trustees to invest trust assets in a manner that maximizes returns.
A rule that requires trustees to invest trust assets in a manner that minimizes risk.
A rule that requires trustees to invest trust assets in a manner that is consistent with the terms of the trust.

What are the duties of a trustee under the Uniform Prudent Investor Act?

To exercise reasonable care, skill, and caution.
To diversify investments.
To act in accordance with the terms of the trust.
All of the above.

What is the purpose of the Uniform Prudent Investor Act?

To protect the interests of trust beneficiaries.
To provide a safe harbor for trustees who make prudent investments.
To encourage trustees to take risks in order to maximize returns.
To simplify the process of investing trust assets.

What is the standard of care that trustees must meet under the Uniform Prudent Investor Act?

The prudent investor standard.
The reasonable person standard.
The highest duty of care.
The duty of loyalty.

What factors must trustees consider when making investment decisions under the Uniform Prudent Investor Act?

The purpose of the trust.
The needs of the trust beneficiaries.
The risk tolerance of the trust beneficiaries.
The investment horizon of the trust.
All of the above.

Can trustees delegate investment authority to others?

Yes, if the delegation is authorized by the trust instrument.
Yes, if the delegation is in the best interests of the trust beneficiaries.
No, trustees cannot delegate investment authority to others.
Yes, if the delegation is approved by the court.

What is the duty of loyalty that trustees owe to trust beneficiaries?

To act in the best interests of the trust beneficiaries.
To avoid conflicts of interest.
To disclose all material facts to the trust beneficiaries.
All of the above.

What is the purpose of the diversification requirement under the Uniform Prudent Investor Act?

To reduce the risk of loss.
To increase the potential for return.
To comply with the prudent investor standard of care.
All of the above.

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