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Closely Held Business Interests And the Trustee's Duty to Diversify

It's well settled in American jurisprudence governing trust administration that the trustee's duties of due care and prudence in holding and managing trust assets include the duty to diversify investments.

It's well settled in American jurisprudence governing trust administration that, as a general rule, the trustee's duties of due care and prudence in holding and managing trust assets include the duty to diversify investments.1 While modern portfolio theory unequivocally embraces broad investment diversification for trusts holding an array of liquid and publicly traded marketable securities, this duty to diversify can be at great odds with the goals of family business owners who

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