What Is a Trustee? | Role, Duties & Responsibilities
Learn what a trustee is, what they do, and why the role is so important in estate planning. Understand trustee responsibilities from a trusted estate planning attorney.
What Is a Trustee?
If you’re creating a trust or have been named in one, you may be wondering: what exactly is a trustee?
In estate planning, the trustee plays a central role — and it comes with serious legal responsibilities.
Here’s what you need to know.
Trustee Defined
A trustee is the person or institution responsible for managing the assets in a trust according to the instructions laid out in the trust document. The trustee acts on behalf of the beneficiaries — the people (or organizations) who are meant to benefit from the trust.
In simple terms, a trustee is the one in charge of the trust funds and assets — making sure everything inside is protected, invested wisely, and distributed properly.
Who Can Be a Trustee?
- An individual: Often a trusted family member, friend, or professional advisor.
- A professional: Such as an attorney, accountant, or corporate trustee (like a bank or trust company).
The most important thing is that the trustee is trustworthy, organized, and capable of following the law and the terms of the trust.
Trustee Responsibilities
Trustees have what’s called a fiduciary duty, which is the highest standard of legal responsibility. This means they must act in the best interest of the beneficiaries — not themselves.
Typical duties include:
- Managing trust assets responsibly (e.g., real estate, investments, bank accounts)
- Following the terms of the trust
- Keeping accurate records
- Communicating with beneficiaries
- Paying any taxes or expenses of the trust
- Distributing assets according to the trust instructions
Failure to perform these duties correctly can lead to legal liability — so it’s not a role to accept lightly, and a trustee can choose not to serve.
Trustee vs. Executor: What’s the Difference?
People often confuse trustees with executors, but they serve different roles:
- A trustee manages a trust, which can last for years — even decades.
- An executor administers a will and oversees the probate process, typically a one-time role after someone dies.
Sometimes, the same person can serve in both roles, but the responsibilities are distinct.
Should I Choose a Family Member or a Professional Trustee?
That depends on the complexity of the trust and the dynamics of your family.
- A family member may understand the beneficiaries’ needs and save on fees, but could face emotional pressure or conflict.
- A professional trustee is neutral, experienced, and better equipped to handle complex trusts or family tension.
The trustee plays a vital role in making sure your trust works the way you intended. Choosing the right trustee — or understanding your responsibilities if you’ve been named as one — is crucial to protecting the trust and its beneficiaries.