1. A trustee shall not delegate to an agent or cotrustee the entire administration of the trust or the responsibility to make or participate in the making of decisions with respect to discretionary distributions, but a trustee may otherwise delegate the performance of functions that a prudent trustee of comparable skills might delegate under similar circumstances.
2. The trustee shall exercise reasonable care, skill, and caution in the following activities:
a. Selecting an agent.
b. Establishing the scope and terms of a delegation, consistent with the purposes and terms of the trust.
c. Periodically reviewing an agent's overall performance and compliance with the terms of the delegation.
d. Redressing an action or decision of an agent which would constitute a breach of trust if performed by the trustee.
3. A trustee who complies with the requirements of subsections 1 and 2 is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom a function was delegated.
4. In performing a delegated function, an agent shall exercise reasonable care to comply with the terms of the delegation.
5. 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.
99 Acts, ch 125, §52, 109
Section effective July 1, 2000; 99 Acts, ch 125, §109
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