Trustee
The role of a trustee is to manage assets left in trust to beneficiaries of the estate. The trustee and executor have different roles; however, it is possible that the same person can be named to fulfill both responsibilities.


The primary responsibilities of a trustee include:
  • Carry out and administer the provisions set forth in the trust document.
  • Maintain loyalty to trust beneficiaries.
  • Exercise diligence and care in managing the trust assets.
  • Always segregate trust assets from the trustee's personal assets.

As with the executor relationship, choosing a trustee means choosing someone that you trust. This does not mean that the trustee necessarily has to be an individual; you may choose a financial institution with a trust department (usually considered a "corporate trustee"). As you might expect, choosing a corporate trustee may involve higher costs but with that you should expect more knowledge and familiarity with being a trustee.

Also, note that a person can also elect two or more trustees if the situation requires and that trustees can be removed for breaching their fiduciary duties.

Guardian

Related Articles
  1. Retirement

    How to Identify a Good Trustee

    Your estate plan is only as good as your trustee. Choose the wrong one and it can create a bad situation for your heirs.
  2. Managing Wealth

    What's a Trust Fund?

    A trust fund is a fund comprised of a variety of assets, established by a grantor, to provide financial security to an individual, most often a child or grandchild - or organizations, such as ...
  3. Managing Wealth

    How to Set Up a Trust Fund in Canada

    You don't have to be rich to make use of a trust fund. Rules can be complex; here's what you'll need to discuss with your lawyer.
  4. Retirement

    How To Set Up A Trust Fund In The U.K.

    A guide to the whys and wherefores of setting up this most versatile of estate-planning instruments in the United Kingdom.
  5. Financial Advisor

    Irrevocable Trusts: New Trends You Need to Know

    Several improvements and additional provisions have been added to irrevocable trusts in recent years making them considerably more versatile than before.
  6. Retirement

    How To Set Up A Trust Fund In Australia

    No, they're not just for the super-rich. But you need to know the rules.
  7. Managing Wealth

    Special Trusts For Special Needs

    If you or someone you love has a disability, these trusts can help ease the cost of care.
  8. Personal Finance

    Buying a Home in Trust

    Buying a home in a real estate trust allows for tax advantages, possibly avoiding probate court, and future family conflict. Below we outline the two different types and what to arm yourself ...
  9. Retirement

    Make Your Estate a Gift, Not a Burden

    Having legal estate documents in place is only one step in preparing your estate for your heirs.
Frequently Asked Questions
  1. When are Beneficiaries of a Will Notified?

    Learn when the beneficiaries of a will must be notified, and understand how this requirement varies depending on whether ...
  2. Why Does Larry Page Pay Himself a $1 Salary?

    Google co-founder Larry Page continues to take an annual salary of only $1 as chief executive officer.
  3. What is Common Stock and Preferred Stock?

    Learn about the differences between common and preferred shares. Explore situations where preferred shares have more favorable ...
  4. Can CareCredit be Used for Family Members?

    Learn more about the available options that CareCredit offers to pay for out-of-pocket medical procedures with little to ...
Trading Center