A trustee is an individual or firm that holds and administers property or benefits on behalf of a third party. Trustees are often used for charities, trust funds, cases of bankruptcy, and some types of retirement plans. In all cases, a trustees has the fiduciary responsibility to make decisions in the beneficiary’s best interests, putting aside personal goals and incentives.
A trustee is granted legal title of an asset or group of assets through an agreement between two consenting parties known as a trust. The trust sets out the guidelines of the trustee’s responsibilities. For example, a trust consisting of real estate properties will require the trustee to oversee maintenance of the land. A trust with investments requires the trustee to make sure those investments remain viable. Trusts can be very particular in order to reflect the desires of the beneficiary. While a trustee is often given a great amount of autonomy in making decisions, they must report to the beneficiary on a regular basis. The trustee is also responsible for the trust’s record keeping, including statements and tax returns.
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