Trustee

A trustee holds legal title to the trust's corpus — its underlying property — but does not own it beneficially. The trustee's job is to administer the assets prudently for the benefit of the beneficiaries, following the instructions the grantor set out in the trust document. Trustees can be individuals (a family member, trusted advisor, or friend) or institutions (banks, trust companies, or family office entities).

The trustee carries a fiduciary duty — one of the highest legal standards of care — meaning decisions must be made loyally and prudently for the beneficiaries' interests, not the trustee's own. This includes investment decisions, recordkeeping, tax filings, and distribution determinations. Failing to meet this standard can expose a trustee to personal liability.

Families often weigh individual versus institutional trustees carefully. An individual trustee may bring deep family knowledge and flexibility; an institutional trustee brings continuity, professional infrastructure, and impartiality — particularly valuable when beneficiaries disagree or when a trust spans multiple generations. Some trusts use a co-trustee arrangement combining both. A qualified attorney should help evaluate which structure suits a family's circumstances, as trustee selection is one of the most consequential decisions in trust design.