Prudent Man Rule
A fundamental legal maxim restricting the discretion of a trustee or executor to manage assets entrusted to him or her as a person of prudence would do under similar circumstances—i.e. with discretion, intelligence, honesty and care. The prudent man rule does not require that the trustee or executor always make correct decisions; it merely requires him or her to make decisions that will be generally accepted as sound for someone of average intelligence. See Prudent Investor Act.