Trustee

The word trustee is a legal term that refers to a member of a trust, which can be set up for any of a variety of purposes, and is entrusted with the administration of property on behalf of others. With respect to most private trusts, the trustee holds legal title to the trust property, is the representative of the trust, and has the capacity to sue and be sued on behalf of the trust. The trustee carries the fiduciary responsibility and liability to use the trust assets for the benefit of the beneficiary according to the rules of the trust instrument. The trustee can be compensated for their time in performing their duties as trustee. They are generally held to a "prudent person" standard in regards to meeting their fiduciary responsibilities, though investment, legal, and other financial professionals can be held to a higher standard commensurate with their higher expertise.

References

• Fontaine, C. JD, LLM, CLU, ChFC (2004) Fundamentals of Estate Planning. The American College Press