Traditional trust law prohibited delegating investment functions, but modern trust law has what stance?

• A. Delegation is still prohibited.
• B. Delegation is allowed without any standard.
• C. Delegation is allowed, but modern law imposes no such prohibition.
• D. Delegation is allowed only if a corporate trustee is used.

Answer: (D)

The key idea is that trust law has moved from a blanket ban on handing off investments to a system that allows delegation to professionals, but with real safeguards. Modern practice accepts that a trustee can appoint others to manage investments, provided there is proper oversight under the prudent investor framework. The option that fits best emphasizes that delegation is permissible when it’s done through a corporate trustee. Corporate trustees bring institutional expertise, structured governance, and formal investment policies, which help ensure the trustee meets fiduciary duties, monitors performance, and diversifies appropriately. This setup reduces personal liability and aligns with the expectation that investments are managed by capable professionals. In contrast, options that say delegation is still prohibited, or that it’s allowed without standards, or that it’s allowed without requiring a corporate trustee, ignore the essential safeguards and professional oversight central to modern trust management.