Trustee – Glossary | RJP Estate Planning

Trust Terms

The person or institution responsible for managing a trust and carrying out its instructions.

A trustee is the person or institution that holds legal title to trust assets. The trustee manages them according to the trust document. The trustee has a fiduciary duty, a legal obligation to act in the best interest of the beneficiaries.

Types of Trustees

Initial trustee: With a revocable living trust, this is usually you. You manage your own assets just as you did before creating the trust.
Successor trustee: The person or institution you name to take over when you can no longer serve.
Co-trustees: Two people serving together. This can cause problems if they disagree, so consider it carefully.
Corporate trustee: A bank or trust company that serves as trustee professionally. Useful when no family member fits the role.

What a Trustee Does

A trustee manages investments, pays bills, files trust tax returns, and makes distributions to beneficiaries. The trustee keeps accurate records. The trustee must follow the trust's instructions and cannot use trust assets for personal benefit.

Choosing the right successor trustee is one of the most important estate planning decisions. The person should be trustworthy, organized, financially responsible, and willing to serve.