DEFINITION of 'Incorporated Trustee'

A corporation, usually a trust company, which is named as the trustee of a private trust or other fiduciary account. Incorporated trustees stand in contrast to an individual person or "natural trustee," who may also be selected as the trustee of such an account. In both cases, the trustee's role is to execute the instructions of the trust's grantor as well as manage the assets of the trust.

BREAKING DOWN 'Incorporated Trustee'

There are two primary advantages of appointing an incorporated trustee. First, since corporations theoretically never die or become incapacitated, they will likely outlast individual trustees. Second, since professional trustees focus all their time on this role, they're typically more knowledgeable about the role and less likely to mismanage the trust. The two primary disadvantages are the costs of professional trust management and a lack of understanding for the grantor's unexpressed wishes.

RELATED TERMS
  1. Trustee

    A person or firm that holds or administers property or assets ...
  2. Acceptance Of Office By Trustee

    A mutual understanding that a person has with the estate that ...
  3. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  4. Active Trust

    A trust where the trustee is held accountable for additional ...
  5. Voting Trust Agreement

    A contractual agreement detailing the specifics of the voting ...
  6. Declaration Of Trust

    A statement made by the title holder of a piece of property that ...
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

    Can You Trust Your Trustee?

    Ignorance and incompetence can cost you money. Make sure your trustee is up to the task.
  3. 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 ...
  4. Managing Wealth

    Ensuring That Your Trust Is Trustworthy

    There are many cases of trusts being mismanaged, so find out how to make sure yours is on the right track.
  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. 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.
  7. 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.
  8. 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.
  9. 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.
  10. Managing Wealth

    Understanding Revocable Trusts

    A revocable trust is a legal arrangement whereby a grantor transfers property to a trustee who holds the property in trust for the grantor’s benefit.
RELATED FAQS
  1. My company is the trustee of our 401k plan (which has 112 participants). What are ...

    The answer may vary depending on the plan provider and the provisions of the plan document. For questions relating to a specific ... Read Answer >>
Hot Definitions
  1. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  2. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  3. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  4. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  5. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  6. Four Percent Rule

    A rule of thumb used to determine the amount of funds to withdraw from a retirement account each year. The four percent rule ...
Trading Center