A trustee is a person or institution that manages trust property for the benefit of beneficiaries.
In plain language, the trustee holds and administers trust assets according to the trust document and fiduciary duties.
Why it matters
The trustee matters because a trust only works if someone has authority and responsibility to manage the assets. The trustee may invest assets, make distributions, keep records, provide notices, and follow the terms of the trust.
The term is central to trust administration and disputes over mismanagement.
Where it appears
Trustee appears in trust documents, living trusts, probate avoidance planning, fiduciary accounting, beneficiary disputes, and court petitions about trust administration.
Practical example
A living trust names an adult child as successor trustee after the grantor’s death. The child must administer the trust and distribute assets according to the trust terms.
How it differs from nearby terms
A trustee differs from a beneficiary. The trustee manages the trust; the beneficiary receives benefits from it.
It also differs from an executor, who administers a probate estate rather than a trust.
Related terms
Quick knowledge check
Question: What does a trustee manage?
Answer: Trust property for the benefit of beneficiaries and under the trust terms.