If the governing instrument is silent with respect to reserves for depreciation or depletion, the trustee:

When the governing instrument does not specify how to handle reserves for depreciation or depletion, it grants the trustee some level of discretion in managing these aspects of the trust. This means that the trustee has the flexibility to determine whether to establish a reserve based on their judgment, the needs of the beneficiaries, and the overall goals of the trust.

The trustee's discretion is crucial because it allows them to make decisions tailored to the specific circumstances surrounding the trust assets and the beneficiaries' interests. They must consider factors such as the nature of the assets, the potential for appreciation or depreciation, and the trust's performance.

In cases where the governing document is unclear, making discretionary choices is common practice, which aligns with the fundamental responsibilities of a trustee to act in the best interest of the beneficiaries while also protecting the integrity of the trust assets.