Texas Property Code
§ 117.011 — DELEGATION OF INVESTMENT AND MANAGEMENT FUNCTIONS
PR § 117.011Title 9. TRUSTS · Part B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · Ch. 117. UNIFORM PRUDENT INVESTOR ACT
Statute text
View on source(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 terms of the delegation.
(b)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.
(c)A trustee who complies with the requirements of Subsection (a) is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated, unless:
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Legislative history
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.