Trusts and Estates
Ca. Trs. & Estates Quarterly VOLUME 31, ISSUE 3, 2025
Content
- Chairs of Section Subcommittees
- Clarity and Consistency: Final Estate Tax Regulations On Consistent Basis and Reporting
- Editorial Board
- Inside This Issue
- Letter From the Former Chair
- Letter From the Former Editor
- Litigation Alert
- Tax Alert
- Tips of the Trade: the Death of Finality: How Revised Section 664.6 May Limit Certainty In Trust and Estate Settlements
- Until Death Do Us Part: Part III: the Litigation of Spousal Fiduciary Breaches Under the Family Code In the Post-death Setting
- A Framework For Compliance With the Prudent Investor Act or... Why You Did What You Did When You Did It
A FRAMEWORK FOR COMPLIANCE WITH THE PRUDENT INVESTOR ACT OR… WHY YOU DID WHAT YOU DID WHEN YOU DID IT
Written by Ryan Wolfshorndl, CFA, CFP® and Josh Yager, Esq.*
I. INTRODUCTION
Trustees and investment committee members for foundations and endowments are fiduciaries who are held to the high standard of a prudent investor acting under similar circumstances.01 Unfortunately, many trustees lack the time, experience, or training to meet this responsibility. Delegating investment duties to an advisor does not absolve trustees of their distinguishable duties of care.
In our experience, trustees too often defer major governance decisions to an investment advisor—decisions that are not meant to be delegated. Alternatively, they may fail to establish any governance process at all, mistakenly believing their responsibility ends with selecting a competent advisor.