72-34-609. Delegation of investment and management functions -- standards of care -- trustees and agents -- liability -- jurisdiction.
72-34-609. Delegation of investment and management functions -- standards of care -- trustees and agents -- liability -- jurisdiction. (1) A trustee may delegate investment and management functions as prudent under the circumstances. The trustee shall exercise prudence in the following:
(a) selecting an agent;
(b) establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(c) periodically reviewing the agent's overall performance and compliance with the terms of the delegation.
(2) In performing a delegated function, an agent has a duty to exercise reasonable care to comply with the terms of the delegation.
(3) Except as otherwise provided in 72-34-502, a trustee who complies with the requirements of subsection (1) of this section is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated.
(4) By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state.
History: En. Sec. 8, Ch. 484, L. 2003.