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Definition: Trustee

In the legal sense it refers to the person who holds and administers property, authority or holds a position of trust and responsibility in lieu for another is known as trustee. It can also mean the person who serves as a Board of trustee of a public institution or local government. A trustee can be set up for various kind of appointment as in case of bankruptcy, in case of trust fund, in case of retirement or pension fund. In all such cases the trustee is hold responsible to act in the interest of the beneficiary.

Some of the duties entrusted with the trustee are as follows:

• To administer in the best interest of the beneficiaries

• To carry out in a neutral manner the condition laid out in the trust instrument

• Investments to be done in a prudent fashion

• In case of multiple beneficiary, to be impartial in carrying out the task

• Accountable for any kind of actions, to keep a proper record of those and keep the beneficiaries up to date

• Not to delegate pre assigned responsibilities entrusted by the trust

• Since being a trustee means not to indulge in profit making but can accept a service fee from the trust for the services offered

• Not to land up in a position where conflict of interest occurs



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