Mich. Comp. Laws » Michigan Compiled Laws / Chapter 700 / Act 386 of 1998
Michigan Compiled Laws

Mich. Comp. Laws § 700.1502 (2026)

Prudent investor rule.

✓ current as of July 2026
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ESTATES AND PROTECTED INDIVIDUALS CODE


Act 386 of 1998


700.1502 Prudent investor rule.

Sec. 1502.

    (1) A fiduciary shall invest and manage assets held in a fiduciary capacity as a prudent investor would, taking into account the purposes, terms, distribution requirements expressed in the governing instrument, and other circumstances of the fiduciary estate. To satisfy this standard, the fiduciary must exercise reasonable care, skill, and caution.

    (2) The Michigan prudent investor rule is a default rule that may be expanded, restricted, eliminated, or otherwise altered by the provisions of the governing instrument. A fiduciary is not liable to a beneficiary to the extent that the fiduciary acted in reasonable reliance on the provisions of the governing instrument.

History: 1998, Act 386, Eff. Apr. 1, 2000

PopularName Notes:

EPIC
Notes of Decisions
Cited in 3 cases (2 in the last 5 years), 2015–2026 · leading case: In Re Conservatorship of Il (Mich. Ct. App. 2026).
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In Re Conservatorship of Il (Mich. Ct. App. 2026). · cites it 2× “” MCL 700.1502. A probate court may impose various remedies for a fiduciary’s breach of their duty, including removal “as provided” in EPIC.”
in Re Conservatorship of Nina Jean Murray (Mich. Ct. App. 2021). “7803; MCL 700.1502(1). In this case, a preponderance of the evidence established that respondent breached his fiduciary obligations as a conservator under MCL 700.”
in Re St Thomas Est. (Mich. Ct. App. 2015). “, a fiduciary must “invest and manage assets held in a fiduciary capacity as a prudent investor would,” MCL 700.1502, and prudent investment and management of such assets must be implemented “[w]ithin a reasonable time after accepting appointment as a fiduciary or receiving…”
— Mich. Comp. Laws § 700.1502(1) — 1 case
in Re Conservatorship of Nina Jean Murray (Mich. Ct. App. 2021). “7803; MCL 700.1502(1). In this case, a preponderance of the evidence established that respondent breached his fiduciary obligations as a conservator under MCL 700.”
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