26-45.10 - Delegation of investment and management functions. - Virginia Statutes

§ 26-45.10. Delegation of investment and management functions.

A. A trustee may delegate investment and management functions that a prudenttrustee of comparable skills could properly delegate under the circumstances.The trustee shall exercise reasonable care, skill, and caution in:

1. Selecting an agent;

2. Establishing the scope and terms of the delegation, consistent with thepurposes and terms of the trust; and

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

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

C. A trustee who complies with the requirements of subsection A is not liableto the beneficiaries or to the trust for the decisions or actions of theagent to whom the function was delegated.

D. By accepting the delegation of a trust function from the trustee of atrust that is subject to the law of this Commonwealth, an agent submits tothe jurisdiction of the courts of this Commonwealth.

(1999, c. 772.)