§ 9:2087 — Delegating performance

§2087. Delegating performance
A. Except as otherwise provided in this Section, a trustee shall not delegate the
performance of his duties.
B.(1) A trustee may, by power of attorney, delegate the performance of acts that he
could not reasonably be required to perform personally and the performance of ministerial
duties.
(2) A power of attorney, granted by a trustee authorizing a mandatary to alienate,
acquire, lease, or encumber specifically described property on specific terms, shall be
considered the delegation of the performance of a ministerial duty as provided by Paragraph
(1) of this Subsection. The recitation by the trustee in a power of attorney that he has
approved the specific terms of the transaction shall be sufficient to demonstrate that the
trustee has delegated to the mandatary the performance of a ministerial duty.
C. A trustee may delegate the selection of specific investments by acquiring mutual
funds registered under the Investment Company Act of 1940, or other pooled funds managed
by a third party, so long as the portfolio of such a fund consists substantially of investments
not prohibited by the trust instrument.
D.(1) A trustee may delegate investment and asset management functions that a
prudent trustee of comparable skills could properly delegate under the circumstances. In
connection with such delegation, the trustee has the duty to exercise reasonable care, skill,
and caution in selecting the agent and establishing the scope and terms of the delegation
consistent with the purposes and terms of the trust instrument, to review periodically the
actions of the agent, and, in the event of a breach of the agent's duties discovered by the
trustee, to take such action to remedy the breach as is reasonable under the circumstances.
(2) In performing a delegated function, an agent owes a duty to the trustee and to the
beneficiaries to exercise reasonable care and skill, considering the scope and terms of the
delegation. An agreement to relieve the agent from that duty is contrary to public policy and
void.
(3) By accepting delegation from a trustee of a trust established pursuant to this
Code, an agent submits to the jurisdiction of the courts of this state in all matters relating to
the performance of his duties.

Legislative History

Acts 2001, No. 520, §1; Acts 2010, No. 224, §1; Acts 2014, No. 188, §1; Acts 2015, No. 219, §1.