What is the function of a Power to Invest Clause?

A Power to Invest Clause serves to provide broad investment discretion to the estate trustee, enabling them to manage and grow the estate's assets effectively. This clause is essential because it allows estate trustees to make investment decisions based on the unique circumstances of the estate and the market conditions at the time.

The flexibility afforded by such a clause is crucial for preserving the value of the estate over time, as it empowers trustees to pursue various investment opportunities that align with the estate's objectives. This can entail making investments in stocks, bonds, real estate, or other suitable vehicles that would potentially yield a better return for the beneficiaries.

By granting this broad discretion, a Power to Invest Clause helps to ensure that estate trustees can respond appropriately to changing financial landscapes, thus protecting and potentially increasing the value of the estate. In contrast, options that limit investment choices or require consent for any investment would diminish the trustee's ability to perform their duties effectively. Similarly, mandating asset sales as a default response to prevent losses could potentially lead to unfavorable financial outcomes for the estate, rather than allowing for a strategic approach to asset management.