trustees

Trustees are individuals or organizations that hold legal title to property in a trust and manage it for the benefit of designated beneficiaries. They administer the trust according to its terms and must act in the beneficiaries' best interests, exercising prudent judgment and loyalty. Trustees may serve in private trusts, charitable trusts, pension schemes, or endowments, and may be named in the trust instrument, appointed by the settlor, a court, or a governing body.

The core duties include loyalty, avoidance of conflicts of interest, and acting with reasonable care. Trustees must follow the trust terms, act impartially among beneficiaries, and keep accurate records. They are typically expected to diversify investments unless the trust instrument directs otherwise, monitor performance, and report to beneficiaries or the grantor. They may have the power to buy, sell, invest, lease, or lease back assets, borrow money, or appoint agents, but these powers must be exercised within the bounds of the law and the trust agreement.

Breach of trust can expose trustees to personal liability. Some jurisdictions provide statutory duties and remedies; professional trustees may have indemnity insurance. Beneficiaries or courts can seek removal for mismanagement or conflicts of interest, and trustees may be entitled to reasonable compensation for their services, subject to the trust terms and law.

In charitable trusts, regulatory regimes may require annual reporting and independent audits. In many countries, trust law is shaped by a mix of common law and statutory regimes. Trustees are expected to keep beneficiaries informed and to administer the trust in a transparent manner.