Kentucky Statutes 386B.8-070 – Delegation by trustee
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(1) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:
(a) Selecting an agent;
(b) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(c) 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 subsection (1) of this section is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
(4) By accepting a delegation of powers or duties from the trustee of a trust that is subject to the law of this Commonwealth, an agent submits to the jurisdiction of the courts of this state.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 66, effective July 15, 2014.
(a) Selecting an agent;
Terms Used In Kentucky Statutes 386B.8-070
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Kentucky Statutes 386B.1-010
- Trust: means an express trust established by a trust instrument, including a will, whereby a trustee has the duty to administer a trust asset for the benefit of a named or otherwise described income or principal beneficiary, or both. See Kentucky Statutes 386B.1-010
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, and successor trustee, and a cotrustee. See Kentucky Statutes 386B.1-010
(b) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(c) 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 subsection (1) of this section is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
(4) By accepting a delegation of powers or duties from the trustee of a trust that is subject to the law of this Commonwealth, an agent submits to the jurisdiction of the courts of this state.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 66, effective July 15, 2014.