If the investment function is delegated to an investment professional, is that allowed?

• A. Yes, if the trustee exercises due care in selecting and monitoring the expert.
• B. No, delegation is never allowed.
• C. Yes, automatically without oversight.
• D. Only if the investment is in a specialized asset class.

Answer: (A)

Delegation to a professional is allowed under prudent investor principles, as long as the trustee exercises due care in selecting and monitoring the expert. The trustee must conduct thorough due diligence when choosing the advisor and continuously oversee their performance, fees, and alignment with the trust’s objectives and risk tolerance. The trustee remains ultimately responsible for investment outcomes, so ongoing oversight is essential. This is why the other options don’t fit: delegation isn’t automatic or unconditional, it isn’t prohibited, and it isn’t limited to specialized asset classes—the key is careful selection and ongoing monitoring.