Trustee

In one sentence

The person or institution legally responsible for managing assets held in a trust.

Plain English

A trustee acts as a fiduciary, meaning they have a legal duty to manage trust property for the benefit of the people who will eventually receive it (called beneficiaries). The trustee must follow the instructions in the trust document, invest assets wisely, keep detailed records, and distribute funds according to the trust's terms. Trustees can be family members, professional money managers, or banks.

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Example

After her grandmother's death, Maria is named trustee of a trust that holds rental properties and investments. Maria must collect rent, pay property taxes, file tax returns for the trust, and distribute income to her three siblings as the trust document specifies.

Used in a sentence

“The trustee has a fiduciary duty to act in the best interests of all beneficiaries.”

Related terms

Beneficiary

A person or organization entitled to receive money or property from a trust, will, or insurance policy.

Grantor

The person who creates a trust and transfers property into it.

Trust Instrument

The legal document that creates a trust and outlines how assets will be managed and distributed.

Irrevocable Trust

A trust that cannot be changed, modified, or terminated once created without beneficiary consent.

Revocable Trust

A trust that the grantor can modify, amend, or terminate during their lifetime.

Probate

The court process of validating a will and distributing a deceased person's estate.

Intestate Succession

The legal process of distributing a deceased person's property when they leave no valid will.

Elective Share

A surviving spouse's right to claim a portion of the deceased spouse's estate despite the will.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.