Sec. 1510.
(1) A fiduciary may delegate investment and management functions provided that the fiduciary exercises reasonable care, skill, and caution in all of the following:
(a) Selecting an agent.
(b) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the governing instrument.
(c) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
(2) A fiduciary who complies with the requirements of subsection (1) is not liable to the beneficiaries or to the fiduciary estate for a decision or action of the agent to whom the function was delegated.
(3) In performing a delegated function, an agent owes a duty to the fiduciary estate to exercise reasonable care to comply with the terms of the delegation. If an agent accepts the delegation of a fiduciary function from a fiduciary that is subject to the laws of this state, the agent submits to the jurisdiction of this state's court.
History: 1998, Act 386, Eff. Apr. 1, 2000 Popular Name: EPIC
Structure Michigan Compiled Laws
Chapter 700 - Estates and Protected Individuals Code
Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206)
Article I - Definitions, General Provisions, and Court Jurisdiction (700.1101...700.1512)
386-1998-I-5 - Part 5 Prudent Investor Rule (700.1501...700.1512)
Section 700.1501 - Short Title of Part; Definitions.
Section 700.1502 - Prudent Investor Rule.
Section 700.1503 - Portfolio Strategy; Risk and Return Objectives.
Section 700.1504 - Diversification.
Section 700.1505 - Duties at Inception.
Section 700.1506 - Duties of Fiduciary in Interest of Beneficiaries.
Section 700.1507 - Impartiality.
Section 700.1508 - Investment Costs.
Section 700.1509 - Reviewing Compliance.
Section 700.1510 - Delegation of Investment and Management Functions.
Section 700.1511 - Language Invoking Standard of Prudent Investor Rule.
Section 700.1512 - Application to Existing Fiduciary Estates.