Overview
Collect, earmark, comingle, delegate, prudent investor. This module covers 9 of The Law of Trusts casebook, with real case holdings, key principles, and practical problems.
Educational content from the casebook "The Law of Trusts" — rebranded under AKASHIC INTELLIGENCE / LOVELOVINGLIFE. This is legal education, not legal advice. Trust law varies by state. Always consult a qualified estate-planning attorney.
Key Cases (3)
Dommerich's Will
74 N.Y.S.2d 569 · Issue: Earmarking — bearer bonds
Holding: A trustee does not commit a breach by holding bearer bonds rather than registering them in the trust's name. Long-established practice permits bearer bonds as trust investments.
Estate of Cooper
913 P.2d 393 · Issue: Prudent investor — portfolio vs. individual assets
Holding: The prudent investor rule focuses on the trustee's conduct, not the end result. The court may consider individual assets and groups of assets, not just overall portfolio performance.
Cochran Trust
901 N.E.2d 1128 · Issue: Prudent investor — no hindsight
Holding: Compliance with the prudent investor rule is determined at the time of the decision, not by hindsight. A trustee choosing between two viable, prudent options does not breach duty.
Practice Problems (1)
Prudent Investor — No Hindsight
Scenario: A trustee sold volatile assets before a market recovery. Beneficiaries sue for lost gains. Result?
Analysis: The trustee is NOT liable. The prudent investor standard is judged at the time of the decision, not by hindsight. If the decision was prudent given the facts then known, there is no breach.
Deep Dive
Read the full chapter in The Law of Trusts, Made Plain