Trustee

Trustee

A Trustee is a person or firm that holds and administers property or assets for the benefit of a third party. A trustee may be appointed for a wide variety of purposes, such as in the case of bankruptcy, for a charity, for a trust fund, or for certain types of retirement plans or pensions. Trustees are trusted to make decisions in the beneficiary's best interests and often have a fiduciary responsibility to the trust beneficiaries.

Duties and Responsibilities

The duties and responsibilities of a trustee will vary depending on the nature of the role and the specific trust arrangement. However, some common duties include:

• Managing the trust's assets responsibly
• Ensuring the trust's income is distributed according to the trust deed
• Acting in the best interests of the beneficiaries
• Keeping accurate records of the trust's activities and finances
• Communicating regularly with the beneficiaries

Types of Trustees

There are several different types of trustees, including:

• Individual Trustee: An individual person who is appointed as a trustee.
• Corporate Trustee: A company that is appointed as a trustee. This is often a bank or a trust company.
• Public Trustee: A government-appointed trustee who manages trusts for people who are unable to do so themselves.

Legal Framework

The legal framework for trustees is largely determined by the Trustee Act 1925 in the UK, and by various state laws in the US. These laws outline the duties, powers and responsibilities of trustees, as well as the procedures for appointing and removing trustees.

See Also

• Trust law
• Fiduciary
• Beneficiary
• Trustee Act 1925

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