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Trusts (Creation (Modification depends upon which party seeks the…

- - - - Settlor consent required if modification conflicts with a material purpose
      - Settlor consent not required if the modification does not conflict with the material purpose of the trust
- - - - No self-dealing, unless trust permits specific acts
      - No personal benefit other than official compensation
      - No apparent conflict of interest
      - Keep trust assets segregated from personal assets
    - - Objective standard of care unless superior skills warrant a higher standard of care
      - Prudent investor rule governs
        
        Trustee is permitted to invest trust assets as would a prudent investor, considering both the interests of life beneficiaries and remainderman
        
        Trustee must seek to diversify the investments
        
        Standard is reasonable care, skill, and caution
        
        Some states maintain a "legal list" approach of approved types of investments