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This Article is meant to serve as a guide to the Uniform Prudent Investor Act. I point to the main reforms and explain what motivated them. I also attempt a look into the future, offering some predictions about how trust-investment practice is likely to change as the principles embodied in the Restatement and the Uniform Act take effect. Among the changes foreseen are greater use of equities; of pooled investment vehicles, such as mutual funds; and of relatively unconventional investments, such as foreign securities and derivatives. I also speak of the tendency to break up trusteeship and allocate its functions among specialized service providers. I suggest that, even though the Uniform Prudent Investor Act is default law that the settlor of the trust can alter or oust, the Act is likely to limit the settlor's power to impose manifestly uneconomic investment restrictions. I also explain why the new trust-investment law is likely to have unsettling effects upon the seemingly quite distinct subject of principal-and-income law, that is, upon the rules that govern the allocations that trustees are commonly obliged to make between current and future beneficiaries of the trust.
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