Sec. 45a-541i. Delegation of investment and management functions.
251 words·~1 min read·
/ct/title-45a/chapter-802c-trusts/45a-541i·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)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;
(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 scope and terms of the delegation.
(b)In performing a delegated function, an agent owes a duty to the trustee and to the trust to exercise reasonable care to comply with the scope and terms of the delegation and to exercise the delegated function with reasonable care, skill and caution. An attempted exoneration of the agent from liability for failure to meet such a duty is contrary to public policy and void.
(c)A trustee who complies with the requirements of subsection
(a)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.
(d)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 and can be held liable by the courts of this state for any breach of duty arising out of the delegation agreement or the terms of sections 45a-541 to 45a-541 l , inclusive.