The Uniform Prudent Investor Act was adopted by the Uniform Laws Commission in 1994 and since then has been adopted into law by 43 states, some states already had similar statutes prior to 1994. Trusts are governed by UPIA unless otherwise provided for in the instrument or under applicable law.
The Uniform Management of Institutional Funds Act (UPMIFA) was revised in response to UPIA and the RMNCA (Revised Model Non Profit Corporations Act) in 2006 and covers non-profit, foundation and endowment fund investment management and spending. UMIFA the earlier guideline, adopted by a majority of states was originally enacted in 1972; two years before ERISA (Employee Retirement Income Security Act).
These acts require trustees and fiduciaries to exercise prudence to protect the interests of beneficiaries.
