Section 469.909

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY

Chapter 469

Effective - 28 Aug 2004   

  469.909.  Trustee powers, delegation — agent duties — liability of agent — agent submits to jurisdiction, when. — 1.  A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances.  The trustee shall exercise reasonable care, skill, and caution in:

  (1)  Selecting an agent suitable to the exercise of the delegated function, taking into account the nature and the value of the assets subject to such delegation and the expertise of the agent;

  (2)  Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and

  (3)  Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.

  2.  In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.

  3.  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 even if the delegation agreement provides otherwise.

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(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511)

Transferred 2004; formerly 456.909