What is a trustee?

A trustee is a person or entity that is responsible for managing assets on behalf of a beneficiary. A trustee typically holds legal title to the assets in trust, but may also have limited powers to manage and distribute the assets. Trustees are commonly appointed in trusts, wills and other documents, and they must act in the best interests of the beneficiaries and abide by the terms set forth in the trust document. In California, trustees are subject to a fiduciary duty of care. This means that they are legally responsible for exercising the highest degree of care, skill and competence when it comes to managing the trust assets. This includes selecting investments, paying bills, filing taxes, and distributing the appropriate assets and funds to the beneficiaries. A trustee must also abide by all California laws and regulations, as well as the terms set forth in the trust document. Furthermore, a trust may be created by a "grantor" or "settlor", who can also serve as the trustee of the trust. If the grantor is the trustee, they will have the authority to manage the trust assets and make decisions on behalf of the beneficiaries. However, a grantor can also appoint an independent trustee to manage the trust assets and make decisions on behalf of the beneficiaries. In either case, a trustee must always act in the best interests of the beneficiaries and put their wishes first. They must also follow the terms outlined in the trust document, while also abiding by California law and the fiduciary duty of care.

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