Trustee
The person or institution responsible for managing a trust and its assets for the benefit of the beneficiaries. A trustee has a legal duty (fiduciary duty) to act in the best interests of the beneficiaries.
Legal Definition
A person or entity that holds legal title to trust property and administers it in accordance with the trust instrument for the benefit of the beneficiaries, subject to fiduciary duties of loyalty, prudence, and impartiality.
Practical Example
When Patricia creates a trust for her grandchildren, she names First National Bank as trustee. The bank invests the trust funds, makes distributions for the grandchildren's education, and files tax returns for the trust.