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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.
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Investopedia explains '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.
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