What role does a trustee serve?

The role of a trustee is primarily to administer the trust for its beneficiaries. This involves managing the assets placed in the trust according to the terms set forth by the creator, also known as the grantor or settlor, and ensuring that the beneficiaries receive their intended benefits.

A trustee has a fiduciary duty to act in the best interests of the beneficiaries, which includes overseeing the investment of trust assets, distributing income or principal as specified in the trust document, and maintaining accurate records of all transactions. This role requires a comprehensive understanding of legal obligations and principles related to trusts, making it essential for the trustee to execute their responsibilities with a high level of integrity and impartiality.

While managing investments is certainly a component of the trustee's duties, it is part of the broader responsibility of administering the trust. The creation of legal documents regarding the trust is typically the responsibility of an attorney or estate planner, not the trustee. Similarly, overseeing beneficiaries' financial literacy, although beneficial, is not a formal part of the trustee's obligations. The primary focus remains on managing the trust according to its established terms and serving the needs of the beneficiaries effectively.