A trustee is a person or institution that holds and manages assets for the benefit of another party, known as the beneficiary. The trustee has a fiduciary duty to act in the best interests of the beneficiary, managing the assets prudently and in accordance with the terms of the trust agreement.
The trustee is responsible for managing the assets held in the trust, which may include stocks, bonds, real estate, and other investments.
The trustee must follow the terms of the trust agreement, which outlines how the assets should be managed and distributed.
The trustee has a fiduciary duty to act in the best interests of the beneficiary, putting their needs ahead of their own.
The trustee must provide regular accountings to the beneficiary, showing how the assets have been managed and distributed.
The trustee is responsible for paying taxes on the income generated by the trust assets.
An individual who is appointed to serve as trustee.
A bank or trust company that is appointed to serve as trustee.
Two or more individuals or institutions that are appointed to serve as trustees.
Choose a trustee who has experience and expertise in managing assets and following trust agreements.
Choose a trustee who is honest, reliable, and trustworthy.
Choose a trustee who is able to communicate effectively with the beneficiary.
Consider the fees charged by the trustee.
Trustees play an important role in estate planning, helping to ensure that assets are managed and distributed according to the wishes of the grantor (the person who created the trust).