I am the trustee of a San Diego trust. Can I delegate my trust investment and management responsibilities?

Can I Delegate my Trust Investment and Management Responsibilities as a Trustee?

First of all, one part of serving as a trustee of a California trust is managing and investing the assets of the trust. For individuals appointed as trustee who do not have a background in finance or investment management, this responsibility may feel overwhelming. Fortunately, California trust laws allow trustees to seek assistance. If you are the trustee of a trust and are unclear about your rights and responsibilities, an experienced San Diego trust attorney can guide you through the process of trust administration.

The Uniform Prudent Investor Act and the trust instrument dictate the rights of a trustee with regard to trust asset management and investment. Under the Act, the rules generally state that a trustee may:

  • Delegate investment functions as “prudent under the circumstances”
  • Delegate management functions as “prudent under the circumstances”
  • Furthermore, utilize an agent for handling these duties. This can be done as long as the trustee uses care, skill, and caution when selecting the agent.
  • Limit his or her liability with regard to asset investment and management by delegating these responsibilities. This can be done as long as the delegation is done in compliance with the Act

The trustee choosing to delegate these responsibilities should be certain to carefully document all delegations. They should also document the scope and terms of the arrangements that are made. In conclusion, to learn more about trustee rights and responsibilities , view our free book The Insider’s Guide to California Probate and Trust Administration

Lastly, trustees of California trusts do not have to navigate the administration process alone. For more information, contact an experienced San Diego trust lawyer for guidance. Call us toll free today at (888) 443-6590.


Trustee (noun):

A person or organization that has been given responsibility for managing someone else’s property or money through a Trust. There are different types of trusts, including Totten Trusts, Special Needs Trusts, Testamentary Trusts, Living Trust, and many others. The type of trust will determine the exact actions a Trustee must take in order to perform their job.

Asset (noun):

Assets include all the property belonging to a person or an organization.

 
Scott Grossman

Scott Grossman

Attorney

The Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307