trustee

trus·tee   (trŭ-stē')    n.   Law One, such as a bank, that holds legal title to property in order to administer it for a beneficiary. A member of a board elected or appointed to direct the funds and policy of an institution. A country responsible for supervising a trust territory. See Usage Note at -ee1. v.   trus·teed, trus·tee·ing, trus·tees v.   tr. To place (property) in the care of a trustee. v.   intr. To function or serve as a trustee.

Trustee

An individual who holds or manages assets for the benefit of another.

Investopedia Commentary

For example, an indenture trustee is the agent of a bond issuer who handles all the administrative aspects of a loan, including ensuring that the borrower complies with the terms in the indenture.

See also: Exemption Trust, Indenture, Irrevocable Trust, Trust, Unit Investment Trust, Unit Trust

trustee

An appointed person or institution that manages assets for the benefit of someone else. Trustees are most often trust corporations or trust departments of commercial banks that manage the assets for a fee based on a percentage of the size of the trust (usually under 1%). A trust may be very restrictive or it may allow the trustee wide discretion, depending upon the grantor's wishes.

Main Entry: trust·ee
Pronunciation: "tr&s-'tE
Function: noun
1 : one to whom something is entrusted : one trusted to keep or administer something: as a : a member of a board entrusted with administering the funds and directing the policy of an institution or organization b : a country charged with the supervision of a trust territory
2 a : a natural or legal person to whom property is committed to be administered for the benefit of a beneficiary (as a person or charitable organization) : the holder of legal title to property placed in a trust —compare CESTUI QUE TRUST, SETTLOR b : one (as a corporate director) occupying a position of trust and performing functions comparable to those of a trustee c : TRUSTEE IN BANKRUPTCY —trust·ee·ship noun