72-34-114. Duty to use ordinary skill and prudence. (1) The trustee shall administer the trust with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person would use to accomplish the purposes of the trust as determined from the trust instrument.
(2) The trustor may expand or restrict the standards provided in subsection (1) by express provisions in the trust instrument. A trustee is not liable to a beneficiary for the trustee's reliance on these express provisions.
(3) Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.
(4) This section does not apply to investment and management functions governed by the Montana Uniform Prudent Investor Act, as set forth in Title 72, chapter 34, part 6.
History: En. Sec. 89, Ch. 685, L. 1989; amd. Sec. 8, Ch. 290, L. 1999; amd. Sec. 11, Ch. 484, L. 2003.