Trustee is the legal term and it has been used in its broadest form. This term refers to the person holding any property or any position or any authority and he or she runs the matters of that possession for the benefit of another person or persons. In other terms he is holding the trusteeship of the property or possession.
Legal explanation of a trustee
The rules and regulations of economists have used this term in the strictest sense and this term is specifically used for the person who is holding the responsibilities of running of the specific property or possession on behalf of the original owner of that property. Although the strictest sense of the term is the holder of property on behalf of a beneficiary, the more expansive sense encompasses persons who serve, for example, on the Board of Trustees for an institution that operates for the benefit of the general public.
Different modes of trusteeship
There are various ways in which the trust can be set up. Sometimes it is established by giving the whole responsibility of running a possession and profit and loss to a certain person who obviously does not own that property. In return the whole benefit or profit received from that specific property as a result of working on it is given to the owner. In some other cases, the trust is sometimes donated for charitable works and the whole income goes to the charity work, either any organization or more than one such place where it is consumed. It is very seldom that the trusteeship is utilized for the non charity tasks. The trustee in every case is always a person or a company but not at all the beneficiary.
Duties of trustees
There are certain responsibilities of trustees of the property. The most important of these duties is that a trustee is supposed to carry out the terms as expressed in the commitment as the trust instrument. In addition to this, it is also the responsibility of a trustee to defend the trust and invest the assets of a trust in a highly prudent manner.