§2349. Duties and liabilities; indemnity; delegating performance

            A. Subject to any limitations, restrictions, reservations in the trust, resolution of the trustees, or applicable law, the special charitable trust shall be managed by the trustees. The trustee has a fiduciary duty to act in the best interest of the special charitable trust and its beneficiaries and shall exercise due diligence in the performance of his duties pursuant to the provisions of R.S. 9:2090. A trustee, an immediate family member of a trustee, or a business associated with either shall not do business with or receive renumeration from the trust except for reasonable compensation for services as a trustee as provided for in this Chapter. A trustee shall not engage in conduct or activity that would be prohibited pursuant to R.S. 42:1112 and 1113 as though the trust were a governmental entity.

            B. Notwithstanding the provisions of R.S. 9:2087, the trustee of a special charitable trust shall be authorized to delegate the performance of his duties to one or more trustees, or to an officer, employee, or agent of the trust by resolution of the trustees without requiring a power of attorney. The delegation of authority shall not relieve the trustee of any responsibility imposed by law. The president or equivalent officer, or the trustee, may delegate powers or duties if an officer is absent or for any other reason deemed sufficient. The officer, employee, or agent is authorized to perform the delegated duties of the special charitable trust as prescribed by the trustee and shall be subject to a court of competent jurisdiction on all matters relating to the performance of his duties.

            C. The trustee shall exercise reasonable care, skill, and caution in selecting an officer, employee, or agent, and in establishing the scope and terms of the delegation consistent with the purposes of the special charitable trust when delegating performance of his duties authorized pursuant to this Section. In the event that the trustee discovers a breach of duty, reasonable action under the circumstances shall be taken to remedy the breach.

            D. In performing a delegated function, an officer, employee, or agent of a special charitable trust shall have the same fiduciary duty as the delegating trustee to the special charitable trust, act in the best interest of the special charitable trust and its beneficiaries, and exercise due diligence in the performance of his duties within the scope and terms of his delegation.

            E. The liability of trustees and officers of a special charitable trust shall be as provided in R.S. 9:2792.1.1.

            F. A trustee shall not be held liable under the provisions of this Section if the trustee acted in good faith reliance on any of the following:

            (1) A report made by a representative of the special charitable trust.

            (2) A report made by an appraiser selected with reasonable care by the trustees.

            (3) A financial statement or other record represented as accurate by the president or officer in charge of the financial accounts or records of the special charitable trust.

            (4) A written report by a certified public accountant fairly reflecting the financial condition of the special charitable trust.

            G. Nothing contained in this Section shall derogate from the indemnification authorized pursuant to R.S. 9:2350.

            H. The trustees, officers, employees, or agents of a special charitable trust shall be entitled to reasonable compensation as determined by the trustees for services performed on behalf of the special charitable trust.

            Acts 2024, No. 274, §1, eff. May 23, 2024.