What is the role of a trustee in a trust?

The role of a trustee in a trust is fundamentally to hold and manage the property or assets within the trust for the benefit of the beneficiaries, who are third parties. This means that the trustee is legally responsible for managing the trust according to its terms and in the interests of those beneficiaries, ensuring that their needs are met as outlined by the trust agreement.

Trustees carry fiduciary duties, which means they must act in good faith and with a high standard of care, prioritizing the interests of the beneficiaries above their own. This distinguishing role is critical to the operation of a trust, as it creates a level of separation between the management of the trust assets and the beneficiaries who are entitled to benefit from those assets.

The other options do not accurately reflect the role of a trustee. For example, a trustee does not manage the trust for their own benefit, nor do they have the authority to determine the terms of the trust after the trustor's death; the trustor's instructions govern those terms. Additionally, serving as a witness for the creation of the trust is not a primary function of the trustee, as this role pertains to the legitimacy of the trust's establishment rather than its ongoing management.