A trustee manages the financial assets of another for the benefit of a beneficiary or group of beneficiaries
There are many types and legal capacities of trustees. One common feature is that they all assume the highest duty of loyalty and care to the trust’s stated purpose.
A trustee can be appointed by the court or by a legal entity permitted by state law to act in a trustee’s capacity. The primary responsibility of all trustees is to legally protect and preserve the financial assets under the trust’s stated purpose.
Most trusts are usually testamentary legal instruments. A trust is either a revocable or irrevocable trust.
Examples of different types of trust include:
- Charitable trust
- Constructive trust
- Special needs trust
- Pass-through trust
