Delegation, agents and professionals under Virginia law

What may be delegated

Va. Code § 64.2-769 provides that a trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances, exercising reasonable care, skill and caution in selecting an agent, establishing the scope and terms of the delegation consistent with the trust's purposes and terms, and periodically reviewing the agent's actions to monitor performance and compliance. The agent owes the trust a duty of reasonable care to comply with the terms of the delegation and submits to the jurisdiction of Virginia's courts; a trustee who complies is not liable for the agent's acts. Virginia's section names no notice to the beneficiaries.

Investment and management functions

The Uniform Prudent Investor Act repeats the rule for investment and management functions: the same care in selecting, instructing and monitoring the agent, the agent's duty of reasonable care, and no liability for the trustee who complies (Va. Code § 64.2-788). Investment costs must be appropriate and reasonable (Va. Code § 64.2-786).

Trust directors and the directed trustee

The terms of a trust may grant a power of direction to a trust director (Va. Code § 64.2-779.29). A directed trustee takes reasonable action to comply with the director's exercise or nonexercise of the power and is not liable for doing so, but must not comply where complying would be willful misconduct, and may petition the court for instructions when in reasonable doubt (Va. Code § 64.2-779.32). The Act's terms are defined in Va. Code § 64.2-779.26. Whether a power is a power of direction, and what a directed trustee still owes, are questions for a licensed Virginia attorney of your choosing.

The statutes, verbatim

• Delegation by trustee

  Va. Code § 64.2-769 ↗

  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

  Va. Code § 64.2-779.29 ↗

  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

  Va. Code § 64.2-779.32 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Delegation of investment and management functions

  Va. Code § 64.2-788 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

Common questions

Frequently asked questions

Can a Virginia trustee hire an investment adviser?

Yes, delegating investment and management functions with reasonable care in selecting, instructing and monitoring the agent (Va. Code § 64.2-788).

Must a Virginia trustee tell the beneficiaries about a delegation?

Virginia's delegation sections name no notice (Va. Code §§ 64.2-769, 64.2-788); the standing duty to keep the qualified beneficiaries reasonably informed still applies (Va. Code § 64.2-775(A)).

Is a Virginia directed trustee liable for following directions?

Not for taking reasonable action to comply, except where complying would be willful misconduct (Va. Code § 64.2-779.32).

General information about Virginia law, not legal advice.