Which statement accurately reflects the current law on delegating investment decisions by a trustee?

• A. Delegation to investment professionals is prohibited.
• B. Delegation is allowed only if the entire trust is managed by a corporate trustee.
• C. Delegation is allowed, provided the trustee uses due care in selecting and monitoring the investment professional.
• D. Delegation is always allowed without any duty of care.

Answer: (C)

Delegation of investment decisions is permitted under the prudent investor framework, as long as the trustee acts with due care in selecting and continuously monitoring the investment professional. The trustee retains ultimate responsibility for the trust and must ensure that the chosen adviser or manager is qualified and that their performance is regularly reviewed, so the portfolio remains appropriate to the trust’s goals and risk tolerance. This combination—delegating the work to a professional while maintaining careful oversight—best captures how modern trust investing works in practice. The other options misstate the duty: delegation isn’t prohibited, it doesn’t require a corporate trustee for the entire trust, and it isn’t allowed without any duty of care.