Incorporated Trustee


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.

  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 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. Entrepreneurship

    Identifying And Managing Business Risks

    There are a lot of risks associated with running a business, but there are an equal number of ways to prepare for and manage them.
  6. Stock Analysis

    McDonald’s Vs. Burger King: Comparing Business Models

    Learn how Burger King is turning the tables on McDonald's, and adding another fascinating chapter to a story of one of the most iconic business rivalries of all time.
  7. Stock Analysis

    Samsung Vs. Apple: Comparing Business Models

    Read an in-depth review of competing business models in the tech industry, including how Apple and Samsung are redefining corporate warfare.
  8. Professionals

    5 Must-Watch Films and Documentaries for Business Students

    Understand why it is important for business students to watch relevant films and documentaries. Learn about the top films that business students should watch.
  9. Investing

    How To Create a Winning Elevator Pitch

    Whether you are talking to potential investors, partners, customers or employees, the skill of being able to concisely summarize your business is critical.
  10. Professionals

    Hard and Soft Due Diligence: What's the Difference?

    Learn about the differences between "hard" and "soft" due diligence in a mergers and acquisitions deal (M&A) and why soft diligence is increasingly important.
  1. How are joint ventures regulated in the United States?

    Joint ventures are a very specific type of business arrangement. They can be organized in several different legal structures, ... Read Full Answer >>
  2. How long does it take to execute an M&A deal?

    Even the simplest merger and acquisition (M&A) deals are challenging. It takes a lot for two previously independent enterprises ... Read Full Answer >>
  3. How do a corporation's shareholders influence its Board of Directors?

    The 21st century has seen a rapid increase in shareholder activism, such as the general awareness, involvement and influence ... Read Full Answer >>
  4. What protections are in place for a whistleblower?

    Whistleblowers can play a critical role in ensuring the compliance, safety, honesty and legal fairness of governments and ... Read Full Answer >>
  5. What are some types of financial netting?

    Whenever two parties in any financial relationship square up or consolidate their accounts with one another, it is called ... Read Full Answer >>
  6. Can I buy insurance to reduce unlimited liability in a partnership?

    Partnership insurance is actually quite common. Most of the time, partners buy insurance to safeguard against the possibility ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  4. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  5. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  6. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
Trading Center