Trustee
Trustee
Trustee (/trʌsˈti:/) is a term used in the field of law and finance to refer to an individual or a corporate entity that holds or manages assets for the benefit of a third party.
Etymology
The term "trustee" originates from the English trust law, where it was used to denote the person in whom the legal title to the trust property is vested.
Definition
A trustee is a person or organization, such as a bank or trust company, that is given control of someone else's property or money, usually by means of a trust deed. The trustee is legally obliged to manage these assets in the best interests of the beneficiary or beneficiaries named in the trust deed. This is known as the trustee's fiduciary duty.
Roles and Responsibilities
The roles and responsibilities of a trustee can vary depending on the specifics of the trust agreement. However, they generally include:
- Managing and investing the trust's assets
- Distributing the trust's income and principal according to the terms of the trust agreement
- Keeping accurate records of all trust transactions
- Communicating regularly with the trust's beneficiaries
- Filing tax returns on behalf of the trust
Related Terms
- Beneficiary: The person or entity for whom a trust is created and who receives the benefits of the trust.
- Trustor: The person or entity that creates a trust.
- Trust Deed: A legal document that establishes a trust and outlines the terms and conditions of the trust.
- Fiduciary Duty: A legal obligation to act in the best interest of another party.
External links
- Medical encyclopedia article on Trustee
- Wikipedia's article - Trustee
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