Definition of Trustee:
Person or organization (such as a trust company) named in trust agreement by the trustor or a court (the first party) as a trusted third party to nominally own, and protect and handle, trust-property for the benefit of one or more beneficiaries (the second party) in accordance with the terms of the trust agreement. He or she is usually charged with investing trust property prudently and productively, and (unless specifically prohibited) can lease, mortgage, or sell it if deemed necessary in fulfillment of the trusts objectives. A trustee can be removed and replaced on court orders but, after accepting trusteeship, he or she may not delegate, renounce, or resign his or her responsibility unless an acceptable successor consents as being the replacement. The capacity to be a trustee exists only where there is a capacity to hold or take property, therefore a minor or a person of unsound mind is not acceptable as a trustee. The maker of a trust (trustor) may also be its trustee and/or its beneficiary, but a sole trustee cannot be a sole beneficiary. Although a trustee is legally barred from benefiting from the trusteeship, usually a compensation is allowed in the trust agreement. But he or she cannot commingle personal funds that of the trust and cannot enter into any transaction with the trust. Otherwise the statute of frauds is applied and the fairness or the good-faith nature of the transaction is generally not accepted as a defense. A trustee may also have reporting requirements on the activities and status of the trust and all correspondence regarding the assets is directed to the trustee. He or she is discharged of the duties of the trusteeship only when the intention or the purpose of the trust is fulfilled.
An individual person or member of a board given control or powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified.
Synonyms of Trustee
Administrator, Agent, Accepter, Accountant, Acquirer, Addressee, Audience, Auditor, Beholder, Bookkeeper, Bursar, Cashier, Cashkeeper, Chamberlain, Comptroller, Consignee, Controller, Curator, Depositary, Depository, Fiduciary, Financial officer, Getter, Hearer, Holder, Liquidator, Listener, Looker, Obtainer, Payee, Paymaster, Procurer, Purse bearer, Purser, Receiver, Recipient, Spectator, Steward, Taker, Treasurer, Viewer
How to use Trustee in a sentence?
- Since the children are under age and are the sole beneficiaries of their fathers estate, a trustee was named to administer the estate until the children turn 21, which is the legal age of reason.
- When it came to appointing a trustee to the high-finance case, the court had several options to choose from and trusted each of them implicitly.
- I am listed as the trustee for my mothers estate and intend to fulfill my fiduciary responsibilities when she has passed away.
- Lawyers and trustees have statutory and other legal obligations but are still fiduciaries.
Meaning of Trustee & Trustee Definition