Uniform Prudent Investor Act

Being prudent just means being respectful, careful, measured...you get it.

And, in this case, we're talking about people who act as trustees for estates. In other words, if you happen to find yourself the trustee for a huuuuge portfolio, and it's your job to invest/manage that money on behalf of a beneficiary (that's a big sticking point, by the way; that's the only reason trusts are made in the first place) then this rule says that you cannot invest the money into your own imaginary company you just filed on Legalzoom.com, nor can you invest it in dodo-bird-futures. Because they have been dead for years and there is no such thing as dodo-bird-futures.

So yes, this act says "if you are a trustee, and you act in a willfully stupid manner, you can get in big trouble."

The end.