Trustee

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What is a Trustee?

A trustee is someone who is given the power to manage and administrate things for someone else, which includes handling property, authority, or other forms of responsibility for the benefit of another person.

Can be an individual, an institution, or both.


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Can Be Appointed For:

  • A charity
  • A trust fund
  • A will
  • Certain types of retirement plans or pensions
  • and many more .

Responsibilities

Has the fiduciary duty to act in the interest of the beneficiary and therefore must:

  • Invest trust assets in a conservative manner so that there is reasonable growth but minimum risk
  • Administer the trust according to its terms, including distributing trust assets to the beneficiary
  • Make any decisions that arise according to the provisions of the trust, such as when the beneficiary may receive payments
  • Prepare records, statements, and tax returns and keep all records on file

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How It Works

trustee
Terms to Know

Settlor / Grantor—the person who sets up the trust

Beneficiary—the person who will receive the trust assets

Successor Trustee—someone who steps in to manage the trust if the original trustee is no longer capable

Trust Assets—assets that are held in a trust

References

  1. https://www.estateplanning.com/Duties-and-Responsibilities-of-a-Trustee

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