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. Revocable Trust

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

    A person or firm that holds or administers property or assets ...
RELATED FAQS
  1. When would a vendor care about its accounts payable turnover ratio?

    Vendors can act as suppliers or manufacturers, so they must pay attention to accounts payable and accounts receivable. An ... Read Full Answer >>
  2. What are some examples of debit notes in business-to-business transactions?

    Debit notes are a form of proof that one business has created a legitimate debit entry in the course of dealing with another ... Read Full Answer >>
  3. What is the difference between payment netting and close-out netting?

    Both payment netting and close-out netting are methods of settlement between two or more parties, used to reduce risk exposure. ... Read Full Answer >>
  4. What factors go into determining a business's shutdown point?

    Three main factors help determine a business' shutdown point: how much variable cost goes into producing a good or service, ... Read Full Answer >>
  5. What are the pros and cons of a business temporarily closing once a shutdown point ...

    The first and primary benefit of a business stopping operations after crossing a shutdown point is that it won't run the ... Read Full Answer >>
  6. What are the benefits of financial netting?

    Financial "netting" is a general and somewhat colloquial term. It is used to describe the act of consolidating multiple transactions ... Read Full Answer >>
Related Articles
  1. Personal Finance

    Special Trusts For Special Needs

    If you or someone you love has a disability, these trusts can help ease the cost of care.
  2. Home & Auto

    Can You Trust Your Trustee?

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

    Encouraging Good Habits With An Incentive Trust

    Money can be a powerful motivator - why not use it to teach your heirs positive lessons?
  4. Retirement

    Establishing A Revocable Living Trust

    This arrangement allows you to have more control over your estate - both before and after your death.
  5. Investing Basics

    How Southwest Airlines Has Won Over Travelers

    Understand what Southwest Airlines' competitive advantages are and how they manage to edge out other airlines.
  6. Professionals

    Why Advisors Should Focus on Relationships

    Successful financial advisors share a secret: It's about the people, not the numbers.
  7. Entrepreneurship

    Cold Calling Vs. Networking

    Why networking is taking over from cold calling as the best way for financial advisors to grow their client base – and where cold calling fits in.
  8. Economics

    Gas Dispute Poses Risks For Both The EU And Russia

    The Russia-Ukraine gas dispute has caused energy insecurity for the EU, which is seeking new gas suppliers, and market uncertainty for Russia's Gazprom.
  9. Investing

    What's a Monopolistic Market?

    A monopolistic market has a significant number of characteristics of a pure monopoly. Though there may be more than one supplier, the market has high prices, suppliers tightly control availability ...
  10. Investing

    Who are Stakeholders?

    “Stakeholder” is used in commerce to describe any party who has an interest in a business or enterprise. Traditionally, stakeholders in a corporation are shareholders, employees, customers and ...

You May Also Like

Hot Definitions
  1. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  2. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  3. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  4. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
  5. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability. 2. Facilitating ...
  6. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!