Trustees Everywhere Be Afraid

A New York judge's recent decision in Estate of Dumont1 should give trustees reason to pause and re-evaluate the investment policies and procedures of any trust for which they act, that is governed by or may come to be governed by New York law. The judge held a trustee liable to the tune of $21 million for failing to diversify Eastman Kodak stock when its share prices fell in the 1970s, even though

A New York judge's recent decision in Estate of Dumont1 should give trustees reason to pause and re-evaluate the investment policies and procedures of any trust for which they act, that is governed by or may come to be governed by New York law. The judge held a trustee liable — to the tune of $21 million — for failing to diversify Eastman Kodak stock when its share prices fell in the 1970s, even though the trust's settlor specifically instructed that t

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