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Trustee (or the holding of a trusteeship) is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another, also a trustee can be a person who is allowed to do certain tasks but not able to gain income.^[1] Although the strictest sense of the term is the holder of property on behalf of a beneficiary,^[1] the more expansive sense encompasses persons who serve, for example, on the Board of Trustees for an institution that operates for the benefit of the general public, or a person in the local government.

A trust can be set up either to benefit particular persons, or for any charitable purposes (but not generally for non-charitable purposes): typical examples are a will trust for the testator's children and family, a pension trust (to confer benefits on employees and their families) and a charitable trust. In all cases, the trustee may be a person or company, whether or not they are a prospective beneficiary.

General duties of trustees[edit]

 

Chart of a trust

Trustees^[2] have certain duties (some of which are fiduciary). These include the duty to:

• Carry out the expressed terms of the trust instrument
• Defend the trust
• Prudently invest trust assets (in New South Wales, this is mandated by Trustee Act 1925 (NSW) ^[3])
• Be impartial among beneficiaries
• Account for actions and keep beneficiaries informed
• Be loyal
• Not delegate
• Not profit; however, may charge fees for services to the Trust ^[4]
• Not be in a conflict of interest position