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Source Crimes Against the Person Crimes Against the Person Showing the closest available flashcard practice.

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0 tracked cards Supplemental - Not MEE July 2026

A trust was funded almost entirely with stock in one public company. The trust instrument did not direct retention of the stock. For four years, Trustee kept the entire position without reviewing the beneficiaries' needs, market risk, taxes, or alternatives. The stock then fell sharply.
Which statement is most accurate?

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The trustee complied with prudence because no investment can be judged until the trust terminates. The trustee's only duty was to maximize current income. The trustee breached only if the trustee personally bought the stock. The trustee likely breached the duty of prudence by failing to review and diversify absent special circumstances.

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