What is a trustee?

A trustee is a person or entity responsible for managing the property of another person or legal entity, such as a trust. In Michigan, trustees can be individuals, such as family members, or organizations, such as a bank or a law firm. The responsibilities of a trustee vary based on the type of trust and the wishes of the grantor, the person who created the trust. Generally, trustees are responsible for managing and investing the trust’s assets, making distributions from the trust to the trust beneficiaries, and making sure the trust assets are kept in compliance with all applicable laws. Trustees must act in the best interest of the trust beneficiaries and must always act with loyalty, care, and good faith. They must also keep accurate records related to the trust, including detailed records of trust income and assets, expenses, and distributions to beneficiaries. Trustees also have a fiduciary duty to the trust, which means they must manage the trust assets prudently and help the trust benefit the beneficiaries. They must also provide accurate and timely reports and communications to the trust beneficiaries, and ensure that the trust is managed in accordance with applicable laws. Failure to fulfill these duties can lead to a breach of fiduciary duty, which can have serious legal consequences for the trustee. Therefore, it is important to hire a highly experienced and qualified trustee if you are establishing a trust in Michigan.

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