A testator intends N as trustee; N has no fiduciary experience. What is best guidance regarding N's legal responsibilities and delegation?

• A. N may not delegate any investment function; must personally handle.
• B. N should delegate all duties to a professional.
• C. N need not worry about selection; any professional will suffice.
• D. N may delegate the investment function to an investment professional, but must exercise due care in selecting and monitoring the expert.

Answer: (D)

Trustees must manage trust assets with prudence and care. They may delegate investment decisions to professionals, but they cannot abdicate responsibility. Under the prudent investor approach, a trustee may enlist an investment professional, provided the trustee exercises due care in selecting and monitoring that expert. This means evaluating the advisor’s qualifications, experience, licensing, independence, and fees; ensuring the investment plan fits the trust’s goals, time horizon, and risk tolerance; and requiring regular performance reviews and ongoing oversight. In this scenario, the best guidance is that N may delegate the investment function to an investment professional, but must actively select the professional and monitor their performance. Delegating everything without oversight or choosing any random professional would risk breach of fiduciary duties.