trustee

noun
trust·​ee | \ˌtrə-ˈstē \

Definition of trustee 

(Entry 1 of 2)

1a : a natural or legal person to whom property is legally committed to be administered for the benefit of a beneficiary (such as a person or a charitable organization)

b : one (such as a corporate director) occupying a position of trust and performing functions comparable to those of a trustee

2a : one to whom something is entrusted

b : a country charged with the supervision of a trust territory

3 : trusty

trustee

verb
trusteed; trusteeing

Definition of trustee (Entry 2 of 2)

transitive verb

: to commit to the care of a trustee

intransitive verb

: to serve as trustee

Examples of trustee in a Sentence

Noun

They were named as trustees to the child's estate. the museum's board of trustees

Recent Examples on the Web: Noun

Schnatter also stepped down from the university’s board of trustees, the Lexington Herald Leader reported. Stephen Sorace, Fox News, "Papa John's name removed from Louisville stadium following n-word controversy," 14 July 2018 The president of the school's board of trustees, Archibald Cox, said the school plans to cooperate with police and the state attorney general to investigate the matter. CBS News, "Former student files sex abuse lawsuit against St. Paul's School," 14 May 2018 Others note that the governor appoints the university’s board of trustees, who’ll ultimately be asked to vote on the issue. George Schroeder, USA TODAY, "Arkansas weighs history and money in decision to stay or leave games in Little Rock," 13 Apr. 2018 Was the outside auditor’s report made available to the board of trustees, faculty or students? Michael Harriot, The Root, "The Finessing of Howard University," 29 Mar. 2018 The motion will now be presented to the board of trustees, who will have the final say on whether Trump's Lehigh degree is revoked. Andrea Park, Teen Vogue, "Lehigh University Faculty Vote to Revoke Donald Trump's Honorary Degree From 1988," 28 Feb. 2018 The Sugar Grove Village Board is looking at having a study done to determine if a stoplight is needed at Sugar Grove Parkway and Park Avenue, but some trustees are worried about the cost. Jessie Spangler, Aurora Beacon-News, "Sugar Grove Village Board discusses need for traffic study for proposed stoplight," 13 July 2018 Village President Jeff Pfannerrstill also said trustees are interested in Zion Evangelical Lutheran Church's building at 415 W. Capitol Drive, which is going up for sale. Jordyn Noennig, Milwaukee Journal Sentinel, "Hartland may get a community center, if residents still want one," 3 July 2018 Thursday’s meeting involved the entire board and all trustees were in attendance. Dawn Rhodes, chicagotribune.com, "Supporters flock to defend embattled SIU president as trustees consider ouster," 21 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'trustee.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of trustee

Noun

1636, in the meaning defined at sense 2a

Verb

1818, in the meaning defined at transitive sense

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Statistics for trustee

Last Updated

24 Oct 2018

Look-up Popularity

Time Traveler for trustee

The first known use of trustee was in 1636

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More Definitions for trustee

trustee

noun

Financial Definition of trustee

What It Is

A trustee holds or manages cash, assets or a property title for a beneficiary. The trustee has a fiduciary duty to act in the best interest of the beneficiary.

Trustees play an important role for businesses and individuals. In many cases, trustees make sure that assets held on behalf of individuals or companies are not misused.

How It Works

Let's assume Company XYZ issues $100 million of bonds. Company XYZ will appoint a trustee, usually a bank, to act on behalf of the bondholders. The trustee maintains lists of the bondholders in addition to receiving and distributing interest payments. The trustee also monitors Company XYZ's compliance with the agreements and communicates with the bondholders when the issuer is not in compliance.

Companies often involve trustees in debt offerings, mergers, and other situations involving two parties, a large amount of money, and conditions under which the money moves between the parties.

Why It Matters

In our example, the trustee is effectively the go-between for Company XYZ and the bondholders (but its allegiance is to the bondholders), and the trustee receives a fee from Company XYZ for performing this role. The presence of a trustee also gives Company XYZ a single point of contact for the bondholders and eliminates a considerable amount of administrative work for Company XYZ.

As mentioned earlier, the trustee's job is to act in the best interests of the beneficiary. This responsitrusteelity is called fiduciary duty, and the trustee is legally obligated to uphold this duty. If the trustee fails to do so, they could be legally liable for damages.

Source: Investing Answers

trustee

noun

English Language Learners Definition of trustee

: a person or organization that has been given responsibility for managing someone else's property or money through a trust

: a member of a group that manages the money of an organization

trustee

noun
trust·​ee | \ˌtrə-ˈstē \

Kids Definition of trustee

: a person who has been given legal responsibility for someone else's property

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trustee

noun
trust·​ee | \ˌtrəs-ˈtē \

Legal Definition of trustee 

(Entry 1 of 2)

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

2a : 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

Other Words from trustee

trusteeship noun

trustee

verb
trusteed; trusteeing

Legal Definition of trustee (Entry 2 of 2)

transitive verb

: to commit to the care of a trustee

intransitive verb

: to serve as trustee

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Comments on trustee

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something that serves to warn or remind

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