Final answer:
When the instrument and state law are silent, a bank trustee cannot defer an investment decision to an individual co-trustee without being held responsible for the decision. However, if the trustor approves delegation in writing and absolves the bank fiduciary from liability, the bank trustee may be able to defer the decision. So, the correct answer is option c.
Step-by-step explanation:
When the instrument and state law are silent, a bank trustee generally cannot defer an investment decision to an individual co-trustee without being held responsible for the investment decision. As a trustee, the bank has a fiduciary duty to act in the best interests of the trust beneficiaries, which includes making investment decisions responsibly and prudently.
In certain cases, however, if the trustor explicitly approves such delegation in writing and absolves the bank fiduciary from any liability for the actions of the individual co-trustee, then the bank trustee may be able to defer the investment decision to the co-trustee without being held responsible. This would require specific language in the trust agreement that allows delegation and releases the bank trustee from liability.
So, the correct answer is option c.