Chapter 20 - § 20.5 • DELEGATION

• Jurisdiction: Colorado

§ 20.5 • DELEGATION

Under traditional law, distinction is made between discretionary and ministerial duties. A representative owes a duty not to delegate to others matters involving discretion that he or she should exercise, although it is proper to delegate ministerial acts to others.¹² Under the Restatement (Third) of the Law of Trusts — Prudent Investor Rule, however, delegation of investment responsibilities is authorized if it otherwise meets the test of prudence. Under this rule, for example, it may be prudent for a trustee wholly inexperienced in investment matters to delegate investment responsibility to a professional advisor (provided care is exercised in the selection and retention of the advisor). Whether the Restatement will relax the nondelegation rule further remains to be seen. Note also the enactment in 1977 of C.R.S. § 15-1-307, which provides that when an instrument under which a fiduciary is acting excludes him or her from exercising...