Care of trustee requires an ordinary-prudence standard; trustees liable for losses caused by negligent administration. A trustee must manage trust property with the care of an ordinarily prudent person; if so, and absent a contrary contract, the trustee is not liable for loss. The trustee must exercise reasonable diligence in transmissions, choice and supervision of depositories or agents, sale procedures and in preserving insurance; failure in these duties - such as inadequate advertisement of sales, failure to secure purchase money, neglecting premiums, or relying on imprudent personal security - makes the trustee personally answerable for resulting loss, and a trustee must supervise co-trustees to prevent misapplication.
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Provisions expressly mentioned in the judgment/order text.
Care of trustee requires an ordinary-prudence standard; trustees liable for losses caused by negligent administration.
A trustee must manage trust property with the care of an ordinarily prudent person; if so, and absent a contrary contract, the trustee is not liable for loss. The trustee must exercise reasonable diligence in transmissions, choice and supervision of depositories or agents, sale procedures and in preserving insurance; failure in these duties - such as inadequate advertisement of sales, failure to secure purchase money, neglecting premiums, or relying on imprudent personal security - makes the trustee personally answerable for resulting loss, and a trustee must supervise co-trustees to prevent misapplication.
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