Acceptance Of Office By Trustee

AAA

DEFINITION of 'Acceptance Of Office By Trustee'

A mutual understanding that a person has with the estate that implies they will assume administrative duties after being nominated. Acceptance of office by trustee is basically a formal way of giving consent to serve as a trustee. After being nominated, a trustee may decline to serve but cannot decline after accepting, nor delegate the responsibility.

INVESTOPEDIA EXPLAINS 'Acceptance Of Office By Trustee'

A trustee is a person or institution who has legal title to hold property on behalf of the recipient. They act on the behalf of the beneficiary and are allowed to make decisions based on their professional criteria and best judgment.


Once they accept the office, many trustees serve on a voluntary basis without receiving payment for their work. Some of their duties include handling a trust's affairs, ensuring that it is solvent and well managed, and delivering the outcomes and benefits that were originally set out for the trust. Trustees also prepare reports on the trusts and make sure that the trust complies with the law, among many other responsibilities.

RELATED TERMS
  1. Employee Trust

    A trust fund established by an employer on behalf of its employees ...
  2. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  3. Irrevocable Trust

    A trust that can't be modified or terminated without the permission ...
  4. Revocable Trust

    A trust whereby provisions can be altered or canceled dependent ...
  5. Trustee

    A person or firm that holds or administers property or assets ...
  6. Contingent Beneficiary

    1. A beneficiary specified by an insurance contract holder who ...
RELATED FAQS
  1. What does U.S. law say about contingent beneficiaries?

    In the United States, posthumous asset transfers only require the listing of a primary beneficiary. Contingent beneficiaries ... Read Full Answer >>
  2. How do I change my contingent beneficiary?

    Keeping your beneficiary designations up to date is an important aspect of comprehensive estate planning. Listing a primary ... Read Full Answer >>
  3. If both the primary and contingent beneficiaries are unavailable, what happens to ...

    One of the most common mistakes in estate planning is not keeping beneficiary designations up to date on life insurance policies ... Read Full Answer >>
  4. What kinds of assets can be included in a revocable trust?

    A revocable trust is an important part of estate planning. The trust document allows a living grantor to receive income from ... Read Full Answer >>
  5. How do you set up a revocable trust?

    A revocable living trust (RLT) is an arrangement in which a grantor transfers ownership of property through a trust. The ... Read Full Answer >>
  6. What types of insurance policies have contingent beneficiaries?

    A contingent beneficiary is a person designated to receive the benefits of an insurance policy or retirement account if the ... Read Full Answer >>
Related Articles
  1. Retirement

    Designating A Trust As Retirement Beneficiary

    Designating a trust as your IRA beneficiary can be beneficial, but it requires proper planning to avoid problems.
  2. Taxes

    Tax-Efficient Wealth Transfer

    Taxpayers with large taxable estates were required to take steps to reduce them before 2011.
  3. Insurance

    Keep Your Pet's Trust

    Find out how to protect and provide for your pet after you pass away.
  4. Home & Auto

    Can You Trust Your Trustee?

    Ignorance and incompetence can cost you money. Make sure your trustee is up to the task.
  5. Retirement

    6 Estate Planning Must-Haves

    You need an estate plan even if you don't have significant assets. Learn what you need to include in yours.
  6. Options & Futures

    An Estate Planning Must: Update Your Beneficiaries

    Life changes make it time to rewrite your plan's designations.
  7. Retirement

    Refusing An Inheritance

    Contrary to popular belief, inheriting assets isn't always a good thing. Find out what to do if you want to disclaim them.
  8. Economics

    What is a Fiduciary?

    A fiduciary is a person who acts on behalf of another person (or people) to manage assets.
  9. Retirement

    Retirement: The Journey Of 1000 Miles

    Substantial time should be set aside to fully outline one's vision for retirement and the specific steps that must be taken to realize it.
  10. Professionals

    Tips for Spreading the Wealth to Relatives

    There are many ways that your clients can move money or other assets to relatives in order to reduce their tax bills. Here's a primer on best practices.

You May Also Like

Hot Definitions
  1. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  2. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  3. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  4. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  5. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
Trading Center