What is a trustee?
A person responsible for administrating assets and property on behalf of a third party is called a trustee.
A trustee can be appointed for various reasons, including managing retirement plans or pensions, managing a trust fund, dealing with a bankruptcy, or managing assets on behalf of a charity. This Lexicon examines the role of the trustee when it comes to businesses and organisations.
What do trustees do?
Trustees will often have a fiduciary responsibility and are expected to act in the best interests of those they represent. They should be able to confirm that all assets are safe, and they should honour any trust agreements in place.
Trustees will also be responsible for preparing any records on behalf of the trust.
Other responsibilities of the trustee include the appropriate recording of income, expenses, distribution of funds, and filing of taxes.
Trustees should also ensure that the organisation’s vision is clear to everyone.
They should maintain high standards of honesty and foster an ethical culture.
The trustee should ensure that appropriate financial, risk management, and data protection controls are in place.