Estate of RALPH W. COLLINS, Deceased. CHARLES E. MILLIKAN, JR., as Trustee, etc. et al., Petitioners and Respondents, v. MARGARET B. COLLINS HUGHES et al., Objectors and Appellants

Holding

The court held that the trustees breached their fiduciary duties by failing to adhere to the prudent investor standard, as their investment in a junior mortgage on unappraised property, without adequate investigation or diversification, constituted a failure to exercise the requisite care, skill, and caution, notwithstanding broad discretionary powers granted by the trust instrument.