What Delegation Looks Like in Practice
Managing a trust can involve tasks that require specialized knowledge. Investment management, tax preparation, property maintenance. A trustee does not need to be an expert in every area.
The law permits delegation, but with clear guardrails. A prudent trustee of comparable skills could properly delegate under the circumstances only when the task calls for expertise the trustee does not have.
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 selecting an agent, establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust, and periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
A.R.S. § 14-10807(A)Delegation is not the same as abandonment. A trustee cannot simply hand off responsibilities and walk away. They must choose a qualified agent, define what the agent is authorized to do, and check in regularly.
The trustee must also make sure the agent is performing properly. Regular reviews help catch problems early and protect the trust's beneficiaries.
Protection for a Careful Trustee
When a trustee follows these steps, they receive an important legal protection. They are not personally liable for the agent's mistakes. The agent, in turn, owes a duty to the trust to exercise reasonable care within the scope of the delegation.
A trustee who complies with subsection A is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
A.R.S. § 14-10807(C)There is also a jurisdictional hook. Any agent who accepts a delegation from a trustee of a trust submits to the jurisdiction of the courts. That means beneficiaries have a clear legal path if they need to hold the agent accountable.