What is a trustee?

A trustee is an individual or entity that is responsible for managing and administering a trust in Pennsylvania. A trust is an arrangement in which a person (called the grantor) transfers certain assets to another person (called the trustee) to manage, invest, and use for the benefit of a third person (called the beneficiary). The trustee must act in accordance with the directions of the grantor, usually as outlined in a trust agreement or a will, to carry out the wishes of the grantor. Trustees have a fiduciary duty to the beneficiaries of the trust, meaning that they are legally obligated to act in their best interest. This means that trustees must manage and invest the trust’s assets prudently and use the trust’s funds to fulfill the grantor’s instructions. The trustee’s responsibility also includes filing tax returns for the trust, managing distributions to the beneficiaries, and ensuring that the trust remains in compliance with the law. Trustees may be held liable if they breach their fiduciary duties to the trust beneficiaries. Therefore, it is important for trustees to understand the legal obligations of trusts in Pennsylvania law. Additionally, trustees should seek legal counsel to ensure they properly comply with their legal obligations.

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