Who is called trustee?
A trustee is a person or entity that holds legal title to property for the benefit of another person or entity, known as the beneficiary. Trustees are responsible for managing the trust assets and carrying out the instructions of the trust document. Trustees are typically appointed by the grantor, the person who creates the trust, and can be individuals, corporations, or other entities.
Trustees have a fiduciary duty to act in the best interests of the beneficiaries and to manage the trust assets according to the terms of the trust document. This includes investing the trust assets prudently, making distributions to the beneficiaries as directed, and keeping accurate records of all trust transactions. Trustees must also comply with applicable laws and regulations, such as those related to taxes and investments.
Trustees are often compensated for their services, although the amount of compensation varies depending on the complexity of the trust and the duties of the trustee. In some cases, trustees may be entitled to a percentage of the trust assets or a flat fee.
Trustees are also responsible for filing any necessary tax returns and ensuring that the trust assets are distributed according to the terms of the trust document. If the trust is a charitable trust, the trustee must also ensure that the trust is used for its intended purpose.
Trustees are held to a high standard of care and must act with honesty, integrity, and loyalty to the beneficiaries. If a trustee fails to fulfill their duties, they may be held liable for any losses suffered by the beneficiaries.
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