A fiduciary who holds legal title to trust property and is bound by law to manage that property solely for the benefit of the trust's beneficiaries according to the trust's terms. The trustee owes duties of loyalty, care, impartiality, and prudence, and must administer the trust in good faith.
The trustee is the person who manages the trust—they legally own the trust property but must use it only for the beneficiaries' benefit. They're responsible for investments, distributions, taxes, and following all the trust's rules.
⏱ When you'll encounter this term
- Creating a trust and naming who will manage it
- Trust administration after settlor's death
- Disputes over trustee actions or breaches
- Changing trustees or appointing successors
"Mum created a trust and named herself as trustee. After she died, my uncle became successor trustee. As trustee, he manages the investments, pays expenses, files tax returns, and distributes money to us beneficiaries according to the trust's terms."
⚖️ Compare: Trustee vs Executor
Manages trust property. Ongoing role, sometimes for years. Follows trust document. May serve during and after settlor's life.
Manages estate. Temporary role, usually months. Follows will. Only serves after death.
💡 Did you know?
Trustees have strict legal duties called "fiduciary duties." If a trustee breaches these duties—like using trust money for themselves or making poor investments—they can be personally liable to repay losses to the trust, even from their own pocket.