Trustees are rarely experts in everything a trust needs — especially investment. In practice they delegate functions like asset management to professional agents, but delegation never means walking away. A solicitor advising trustees needs to know precisely what can be handed over, the formalities that make it valid, and the ongoing duties that keep trustees on the hook if things go wrong.
This lesson takes you through the framework step by step, from the power to delegate to recovering losses when an agent is negligent.
What this lesson covers:
- The Power to Delegate — the collective power to appoint agents and the supervisory duties that survive delegation.
- Delegable and Non-Delegable Functions — which functions trustees may delegate and the core judgments they must keep for themselves.
- Requirements for Delegating Asset Management — the four conditions, including written agreement, policy statement, and compliance term, for valid delegation.
- The Trustees' Duty of Care and Liability — where the duty bites, what it demands, and when trustees become personally liable.
- The Agent's Obligations and Liability — the restrictions, investment criteria, and fiduciary duties binding the agent.
- Pursuing and Recovering from an Agent — who brings the claim, what beneficiaries can do, and where recovery goes.