trustee

(trŭ-stē')
n.

1. Law. One, such as a bank, that holds legal title to property in order to administer it for a beneficiary.
2. A member of a board elected or appointed to direct the funds and policy of an institution.
3. A country responsible for supervising a trust territory. See Usage Note at -ee¹.

v., -teed, -tee·ing, -tees.

v.tr.
To place (property) in the care of a trustee.

v.intr.
To function or serve as a trustee.

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A user or group of users that has been given access rights to files on a network server. See also TRUSTe.

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1. Person named to administer a trust for a Beneficiary according to the terms established by the donor.

2. Financial institution, usually a Trust Company or the Trust Department in a commercial bank that holds collateral for the benefit of bondholders. The trustee collects principal and interest payments, invests the cash between payment dates, and disburses funds to pay principal and interest on issued and outstanding bonds.

3. Bankruptcy Trustee named by a bankruptcy judge to handle the assets of a debtor in bankruptcy.

One who holds property in trust for another to secure performance of an obligation; the neutral party in a trust deed transaction.


Example: Johnson purchases property and finances it with a deed of trust from a lender. The title company is the trustee, holding legal title to the property pending Johnson’s satisfaction of the debt.
Should Johnson default on the loan, the trustee may sell the property to satisfy the debt.

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This entry contains information applicable to United States law only.

An individual or corporation named by an individual, who sets aside property to be used for the benefit of another person, to manage the property as provided by the terms of the document that created the arrangement.

A trustee manages property that is held in trust. A trust is an arrangement in which one person holds the property of another for the benefit of a third party, called the beneficiary. The beneficiary is usually the owner of the property or a person designated as the beneficiary by the owner of the property. A trustee may be either an individual or a corporation.

Trusts are useful for investment purposes, and they offer various tax advantages. Another purpose of trusts is to keep the trust property, usually money, out of the hands of the owner. This may be desirable if the beneficiary of the trust is incompetent, immature, or a spend thrift.

Trustees have certain obligations to the beneficiary of the trust. State statutes may address the duties of a trustee, but much of the law covering such obligations is often found in a state's case law, or court opinions.

A trustee is a fiduciary of the trust beneficiary. A fiduciary is legally bound to act, within the confines of the law, in the best interests of the beneficiary. A trustee is in a special position of confidence in relation to the beneficiary because the trustee has control of property that is essentially owned by the beneficiary.

Most trustees possess special knowledge about trusts and investments. By contrast, many beneficiaries are ignorant of such matters. This special knowledge is another feature of the trustee-beneficiary relationship that makes a trustee a fiduciary. A trustee must submit honest reports to the beneficiary and keep the beneficiary informed of all matters relevant to the trust.

Trustees must fulfill the terms of the trust, which address such matters as when and how the trust property will be given to the beneficiary and the kinds of transactions the trustee may conduct with the trust property. Unless the terms of the trust state otherwise, a trustee may invest trust property but must use reasonable skill and judgment in making the investments. In some states a trustee is required by statute to make certain investments under certain conditions, but most states let trustees decide on their own whether to invest the trust property. However, a trustee may not invest property if it is prohibited by the terms of the trust.

In bankruptcy cases a court may appoint a trustee to manage the funds of the insolvent party. Trustees who are appointed by bankruptcy courts are paid for their services from public funds. Trustees who manage trusts for private parties also are paid for their services, but their compensation comes from the creator of the trust or from the trust's funds.

An individual who holds or manages assets for the benefit of another.

Investopedia Says:
For example, an indenture trustee is the agent of a bond issuer who handles all the administrative aspects of a loan, including ensuring that the borrower complies with the terms in the indenture.

Related Links:
Ignorance and incompetence can cost you money. Make sure your trustee is up to the task. Can You Trust Your Trustee?
Many institutions want a piece of your portfolio, but trusts can provide a one-stop shop. Should You Put Your Faith In A Trust?
Deciding what will happen to your assets when you pass away is a must - no matter how wealthy you are. Estate Planning Basics
This arrangement allows you to have more control over your estate - both before and after your death. Establishing A Revocable Living Trust
Money can be a powerful motivator - why not use it to teach your heirs positive lessons? Encouraging Good Habits With An Incentive Trust
Learn about a strategy that could help you reduce taxes, diversify your portfolio and generate income. Saving Money With A Private Annuity Trust
Decrease the value of your taxable estate and prevent the tax man from getting you one last time. How To Avoid Taxation On Life Insurance Proceeds

For a list of words related to trustee, see:

• Judges, Lawyers, and Others in the Court System - trustee: one who holds property in trust for another as a fiduciary
• Titles of Rank - trustee: one of a body of persons appointed to administer affairs of a company or institution
• Banking and Financial Services - trustee: person legally empowered to administer on behalf of beneficiary

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See words rhyming with "trustee."

  See crossword solutions for the clue Trustee.

Dansk (Danish)
n. - kurator, værge, bestyrelsesmedlem, bestyrer
v. tr., -
v. intr. - overlade til bestyrer, bestyre

Nederlands (Dutch)
beheerder (gemachtigde)

Français (French)
n. - fidéicommissaire fiduciaire, administrateur, pays appliquant le régime de tutelle
v. tr. - placer une propriété en fidéicommis
v. intr. - fonctionner/servir en tant que fidéicommissaire (banque)

Deutsch (German)
n. - Treuhänder, Verwalter, Kurator
v. - (ein Vermögen) einem Treuhänder anvertrauen

Ελληνική (Greek)
n. - (νομ.) θεματοφύλακας, επίτροπος, κηδεμόνας, έφορος, καταπιστευματοδόχος

Italiano (Italian)
fiduciario

Português (Portuguese)
n. - síndico (m), fiduciário (m), depositário de bens em penhora (m)

Русский (Russian)
опекун

Español (Spanish)
n. - fideicomisario, síndico, administrador de una empresa
v. tr. - encomendar a un fiduciario o síndico
v. intr. - actuar como fiduciario o síndico

Svenska (Swedish)
n. - förtroendeman, förvaltare, god man, förmyndare (jur.), styrelsemedlem

中文（简体）(Chinese (Simplified))
托管人, 理事, 保管人, 移交给受托人, 扣压以偿欠款, 当受托人

中文（繁體）(Chinese (Traditional))
n. - 託管人, 理事, 保管人
v. tr. - 移交給受託人, 扣壓以償欠款
v. intr. - 當受托人

한국어 (Korean)
n. - 피신탁인, 수탁자, 신탁 통치국
v. tr. - 수탁자의 손에 넘겨 주다
v. intr. - 관재인의 손에 넘기다

日本語 (Japanese)
n. - 受託者, 評議員, 理事

العربيه (Arabic)
‏(الاسم) بلد يتولى ألوصايه على مقاطعه مستقله, ألأمين, ألوصي‏

עברית (Hebrew)
n. - ‮נאמן (אדם שניתנו לו סמכויות ניהול רכוש למען מטרות מסוימות בלבד), ממונה, מפקח‬
v. tr. - ‮הפקיד בידי (נאמן)‬
v. intr. - ‮הופקד בידי‬

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