Investopedia

Continue to Site »

Nonlegal Investment

Filed Under » ,
Dictionary Says

Definition of 'Nonlegal Investment'

A security of sub-investment quality made by a legal representative that does not conform to requirements of defined statutes. Nonlegal investments are typically securities that are not in compliance with statutory regulations for trust investments. They are not the same as unauthorized investments.
Investopedia Says

Investopedia explains 'Nonlegal Investment'

Mandatory legal-list states provide a set list of investments in which a fiduciary must invest; permissive legal-list states provide a list of investments in which a fiduciary may invest. If the fiduciary invests in property or securities not on the list, it becomes their duty to provide the proprietary of the investment. Some states will permit their trusts to hold nonlegal securities if they were previously legal investments whose status was altered by a change in law or if conditions have arisen since their purchase that would make the purchase not legal at the current time.

Articles Of Interest

  1.

    Can You Trust Your Trustee?

    Ignorance and incompetence can cost you money. Make sure your trustee is up to the task.

  2. How To Analyze Real Estate Investment Trusts

    REITs are much like dividend-paying companies, but analyzing them requires consideration of the accounting treatment of property.

  3. Establishing A Revocable Living Trust

    This arrangement allows you to have more control over your estate - both before and after your death.

  4. How To Assess A Real Estate Investment Trust (REIT)

    Find out why funds from operations is a superior measure of REIT performance.

  5. Investing In A Unit Investment Trust

    UITs offer professional portfolio selection and a definitive investment objective. Are they right for you?

  6. Saving Money With A Private Annuity Trust

    Learn about a strategy that could help you reduce taxes, diversify your portfolio and generate income.

  7. Special Trusts For Special Needs

    If you or someone you love has a disability, these trusts can help ease the cost of care.

  8. Pick The Perfect Trust

    Trusts are an estate plan's anchor, but the terminology can be confusing. We cut through the clutter.

  9. Should You Put Your Faith In A Trust?

    Many institutions want a piece of your portfolio, but trusts can provide a one-stop shop.

  10. Do You Dare Sue Your Broker?

    A financial damages claim is not for the fainthearted, but it may be worth it in the end.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center