old | new | |
| Prudent Man Rule | Prudent Investor Rule | |
| To delegate any duties to others | NOT allowed (*2) | Yes |
| Impartiality standard (*1) | Yes | Yes |
| Preservation of the principal | Required | Permissible (*4) |
| Preservation of the purchasing power (*3) | Required | Required |
(*1) The impartiality standard requires prudent handling of different interests, such as those of different beneficiaries (i.e. remaindermen and current-income beneficiaries).
(*2) The trustee was not allowed to delegate any duties to others.
(*3) By earning a return sufficient to offset inflation.
(*4) Growth in the real value of the principal is permissible.
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