Trustee

What it means

A person or institution that holds and manages property in a trust for the benefit of the trust's beneficiary. The trustee has a fiduciary duty — a legal duty to act in the beneficiary's best interest, not the trustee's own. Common trustee tasks include investing trust assets prudently, paying trust expenses and taxes, distributing money or property to beneficiaries according to the trust terms, and keeping clear records. A trust can name an individual (often a family member or trusted friend), a professional (an attorney or accountant), or a corporate trustee (a bank or trust company). The trust document spells out the trustee's powers and limits. A trustee who breaks the duty can be removed by the court and held personally liable for losses.

When you might hear this

A trustee manages property held in a trust for the benefit of someone else. Trustees handle living trusts, special needs trusts, supplemental needs trusts, and trusts created in a will.

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