Incorporated Trustee

AAA

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.

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.

RELATED TERMS
  1. Conglomerates Sector

    A category of stocks of large corporations with diverse and often ...
  2. Trust Certificate

    A bond or debt investment, usually in a public corporation, that ...
  3. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  4. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  5. Trustee

    A person or firm that holds or administers property or assets ...
  6. Revocable Trust

    A trust whereby provisions can be altered or canceled dependent ...
Related Articles
  1. Special Trusts For Special Needs
    Personal Finance

    Special Trusts For Special Needs

  2. Can You Trust Your Trustee?
    Home & Auto

    Can You Trust Your Trustee?

  3. Encouraging Good Habits With An Incentive ...
    Insurance

    Encouraging Good Habits With An Incentive ...

  4. Establishing A Revocable Living Trust
    Retirement

    Establishing A Revocable Living Trust

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center