Trustee is a legal term for a holder of property on behalf of a beneficiary. The term Co-trustee is used when more than one individual or entity shares responsibility. Agent for Trustee is a service many trust companies provide to assist the Trustee in administering the trust.
A trust can be set up either to benefit particular persons, or for any charitable purposes (but not generally for non-charitable purposes). Trustees have certain duties (some of which are fiduciary) and it is important to understand the responsibilities involved when agreeing to be a trustee. Duties include carrying out the express terms of the trust instrument, defending the trust, prudently investing trust assets, maintaining impartiality among the beneficiaries, accounting for their actions and keeping them informed about the trust and administering the trust in the best interest of the beneficiaries. These duties may be expanded or narrowed by the terms of the instrument creating the trust, but in most instances cannot be eliminated completely.
A trustee carries the fiduciary responsibility and liability to use the trust assets according to the provisions of the trust instrument (and often regardless of their own or the beneficiaries’ wishes). The trustee may find himself liable to claimants, prospective beneficiaries, or third parties. In the event that a trustee incurs a liability (for example, in litigation, or for taxes, or under the terms of a lease) in excess of the trust property they hold, they may find themselves personally liable for the excess.
Trustees are generally held to a “prudent person” standard in regard to meeting their fiduciary responsibilities, though investment, legal, and other professionals can be held to a higher standard commensurate with their higher expertise. Trustees can be paid for their time and trouble in performing their duties only if the trust document/instrument specifically provides for payment.
