In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing property for the benefit of a minor, a tutor shall exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital. Within the limitations of the foregoing standard, a tutor is authorized to acquire and retain every kind of property and every kind of investment, specifically including but not by way of limitation, bonds, debentures, and other corporate obligations, and stocks, preferred or common, and securities of any open-end or closed-end management type investment company or investment trust registered under 15 U.S.C. §§ 80a-1 through 80a-52, as from time to time amended, which men of prudence, discretion, and intelligence acquire or retain for their own account.
Art. 4269.Investment and Management of Minor's Property
Book VII. Special Proceedings · Title VI. Tutorship · Chapter 8. General Functions, Powers, and Duties of Tutor · Amendment history unavailable · Last verified July 30, 2026
In one sentenceArticle 4269 holds a tutor to the judgment and care that prudent, discreet, and intelligent people apply to their own investments, favoring capital's permanent safety and probable income over speculation, and lists bonds, stocks, and registered investment company securities among the property a tutor may prudently acquire and retain.
Full Text of Art. 4269
Plain-English Summary
Article 4269 sets a flexible, judgment-based standard rather than a fixed list of permitted and forbidden moves. In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing the minor's property, a tutor must exercise the judgment and care that prudent, discreet, and intelligent people bring to their own affairs, favoring the permanent disposition of funds over speculation, and weighing probable income against the probable safety of capital.
Within that standard, the article names, without limiting the tutor to only these choices, bonds, debentures, other corporate obligations, common and preferred stock, and securities of open-end or closed-end investment companies or trusts registered under the federal statute the article cites, in practice mutual funds and comparable vehicles, as property a prudent person would acquire or retain for personal account.
Article 4269 sets the substantive standard a tutor's investment judgment must meet. Article 4270 supplies the procedural mechanics for making an investment move, including court approval, and Article 4269.1 offers a trust as an alternative structure for managing the minor's property altogether.
Frequently Asked Questions
What standard of care applies when a tutor invests a minor's money?
The judgment and care that prudent, discreet, and intelligent people exercise managing their own affairs, weighing income against the safety of capital rather than speculating.
What kinds of investments can a tutor make for a minor?
Bonds, debentures, other corporate obligations, stocks, and securities of registered investment companies or trusts, among other property a prudent person would hold for personal account.
Is a tutor allowed to invest in stocks and mutual funds for the minor?
Yes. Article 4269 specifically names stocks and securities of registered open-end or closed-end investment companies or trusts as permitted investments.
Does this article let a tutor speculate with the minor's property?
No. Article 4269 explicitly favors the permanent disposition of funds over speculation.
Source & verification. Article text is reproduced verbatim from
the Louisiana Code of Civil Procedure (legis.la.gov). Enacted by the Louisiana Legislature.
Last verified July 30, 2026.
· Official source
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