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If the duty is one which the trustee cannot properly delegate, but he delegates it nevertheless and a loss is sustained, the trustee will be absolutely liable to the beneficiaries. If a duty is delegable and the trustee used reasonable care in the delegation, selection, and supervision of the agent, but a loss was sustained because the agent acted with negligence, dishonesty, or other misconduct, the trustee is not liable to the beneficiaries. If a duty is delegated and reasonable care is used in delegation, the trustee will be liable to third parties under the doctrine of respondeat superior. However, the trustee is entitled to indemnification from the trust estate. Note: respondeat superior does not apply to independent contractors.

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