Working with others · 5 min read
What may be delegated
20 Pa.C.S. §7777 provides that a trustee may delegate duties and powers that a prudent trustee of comparable skills might delegate under the circumstances, exercising reasonable care, skill and caution in selecting the agent, establishing the scope and terms of the delegation, and periodically reviewing the agent's actions.
In performing a delegated function, the agent owes the trust a duty of reasonable care; a trustee who complies with the section is not liable to the beneficiaries or the trust for the agent's decisions or actions (20 Pa.C.S. §7777).
Paying for help
A trustee is reimbursed from the trust property for expenses properly incurred in the administration (20 Pa.C.S. §7769), and the listed powers include paying the compensation of the trustee's employees and agents (§7780.6(a)(8)).
Trust directors
Some trusts give a trust director — not an agent the trustee chooses — a power of direction over investments, distributions or other matters (20 Pa.C.S. §7780.15). A directed trustee takes reasonable action to comply with the director's exercise of the power (§7780.20) and, unless the terms provide otherwise, has no duty to monitor the director (§7780.22).
The statutes, verbatim
Reimbursement of expenses - UTC 709
20 Pa.C.S. §7769 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Delegation by trustee
20 Pa.C.S. §7777 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Powers of trust director and shared powers - UDTA 6
20 Pa.C.S. §7780.15 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Duty and liability of directed trustee - UDTA 9
20 Pa.C.S. §7780.20 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Common questions
Can a Pennsylvania trustee hire an investment adviser?
Yes, as a prudent trustee of comparable skills might, with reasonable care in selecting the adviser, setting the scope and terms of the delegation and reviewing the adviser's actions (20 Pa.C.S. §7777).
Who pays the professionals a Pennsylvania trustee hires?
The trust, as an expense properly incurred in the administration (20 Pa.C.S. §7769).
Is a Pennsylvania trustee responsible for an agent's mistakes?
A trustee who complies with 20 Pa.C.S. §7777 in selecting, instructing and reviewing the agent is not liable for the agent's decisions or actions.
Related reading
The Learning Center is general information about Pennsylvania law — not legal advice, and not a substitute for advice from a licensed Pennsylvania attorney about your specific facts. TrusteeClear is software, not a law firm.
Frequently asked questions
- Can a Pennsylvania trustee hire an investment adviser?
- Yes, as a prudent trustee of comparable skills might, with reasonable care in selecting the adviser, setting the scope and terms of the delegation and reviewing the adviser's actions (20 Pa.C.S. §7777).
- Who pays the professionals a Pennsylvania trustee hires?
- The trust, as an expense properly incurred in the administration (20 Pa.C.S. §7769).
- Is a Pennsylvania trustee responsible for an agent's mistakes?
- A trustee who complies with 20 Pa.C.S. §7777 in selecting, instructing and reviewing the agent is not liable for the agent's decisions or actions.
General information about Pennsylvania law, not legal advice.