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American College HS330 Exam - Topic 2 Question 113 Discussion

Actual exam question for American College's HS330 exam

Question #: 113
Topic #: 2

[All HS330 Questions]

In all cases a trustee must invest trust assets in accordance with the:

Arequirements of a state's mandatory legal list

Brequirements of a state's permissive legal list

Cstated provisions of the trust instrument

Dcommon law standard of the prudent person

Show Suggested Answer

Suggested Answer: C

by Buddy at Jul 06, 2025, 08:34 PM

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Emogene

7 months ago

Totally agree with C! The trust provisions should always come first.

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Trina

7 months ago

Wait, are you sure it's not just the trust instrument? Seems off.

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Gilma

7 months ago

I thought it was D, the prudent person standard is pretty important too.

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Broderick

7 months ago

A state's mandatory legal list is a must, right?

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Willard

7 months ago

It's definitely C, the trust instrument is key!

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Zita

8 months ago

I feel confused about the difference between the mandatory and permissive lists. Could it be B instead?

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Marylin

8 months ago

I practiced a similar question, and I believe it emphasized the state's mandatory legal list, which makes me lean towards A.

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Herminia

8 months ago

I'm not entirely sure, but I remember something about the prudent person standard being important, so maybe D?

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Desiree

8 months ago

I think the answer might be C, since the trust instrument usually outlines how assets should be managed.

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Emilio

9 months ago

This is a classic trust law question. I'm pretty confident I know the right answer here. It's all about following the stated provisions in the trust document, which is option C.

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Junita

9 months ago

Wait, I'm confused. Is this asking about the trustee's general investment duties, or something more specific? I want to make sure I understand the question properly before answering.

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Johnetta

9 months ago

Okay, I've got this. The trustee's investment duties are governed by the terms of the trust instrument, state law, and the prudent person standard. I just need to figure out which of these options best captures that.

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Glory

9 months ago

Hmm, I'm a bit unsure about this one. I know trustees have to follow certain investment guidelines, but I can't quite remember the details. I'll have to think it through step-by-step.

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Laurel

9 months ago

This looks like a straightforward trust law question. I'll start by carefully reading through the options and thinking about the key principles of trust investment duties.

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Penney

11 months ago

Ah, the age-old question of trust asset investment. I'm voting for C - it's the only option that doesn't sound like a legal minefield.

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Dorthy

11 months ago

C, definitely. Anything else would be like trying to fit a square peg in a round hole.

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Cathrine

11 months ago

I agree, C is the way to go.

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Kimi

12 months ago

I believe it's C) stated provisions of the trust instrument because that's what legally binds the trustee.

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Pa

12 months ago

Hmm, I'm torn between B and C. Guess I'll just flip a coin and hope for the best!

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Tiffiny

11 months ago

Yeah, it's best to follow the guidelines set out in the trust document.

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Mammie

11 months ago

I agree, it's important to follow what the trust instrument specifies.

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Dustin

11 months ago

I think you should go with C, the stated provisions of the trust instrument.

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Donte

12 months ago

I'm not sure, but I think D) common law standard of the prudent person could also be a valid answer.

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Brunilda

12 months ago

D sounds like the right answer to me. Gotta go with the good old prudent person standard.

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Francisca

11 months ago

User 2: Yeah, it's important for trustees to make wise investment decisions.

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Bette

11 months ago

User 1: I agree, the prudent person standard is a safe bet.

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Bambi

12 months ago

I agree with Lezlie, the trust instrument should guide how trust assets are invested.

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Laurel

1 year ago

I think the answer is C. The trust instrument should dictate how the assets are invested, not some state's legal list.

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Mammie

11 months ago

The common law standard of the prudent person is also a key factor in investing trust assets.

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Aja

12 months ago

I think it's important to follow the stated provisions of the trust instrument to ensure the assets are managed properly.

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Corazon

12 months ago

I agree, the trust instrument should definitely guide how the assets are invested.

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Lezlie

1 year ago

I think the answer is C) stated provisions of the trust instrument.

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