trustee

noun
trust·​ee | \ ˌtrə-ˈstē How to pronounce trustee (audio) \

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

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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

The trustees of the college have been actively involved in every step concerning this matter, and accepted Bob’s resignation... WSJ, "A Second Battle of Gettysburg Over Freedom," 26 Feb. 2019 The trustees released the text of their budgetary requests through the 2020 fiscal year last week, which noted a tuition increase but made no mention of adjuncts, despite the protests. Kim Kelly, Teen Vogue, "Education Workers on Campuses Around the Country Are Demanding Better Labor Conditions," 10 Jan. 2019 The foundation brings several of Prince Charles’s charities under one umbrella and will become the corporate trustee for the Castle of Mey next year. Lauren Hubbard, Town & Country, "Prince Charles Thinks Meghan Markle Is "The Best Thing to Have Happened" to Prince Harry," 10 Sep. 2018 At a moment when the museum is struggling to regain its balance after a period of turmoil and the abrupt (many say unjust) ousting of the previous director, Thomas Campbell, the Met’s trustees apparently decided against breaking the mold. Dodie Kazanjian, Vogue, "Meet Max Hollein, the Metropolitan Museum’s New Director," 15 Aug. 2018 Neither the trustees nor Timothy Hogan, who is running Hogan Companies, responded to requests for interviews or information about the company’s latest projects. Luke Broadwater, baltimoresun.com, "As governor, Larry Hogan's real estate business continues to thrive — prompting questions," 13 July 2018 She was picked by the trustees this spring and started earlier this month. Bill Leukhardt, Courant Community, "Plainville Welcomes New Library Director," 29 June 2018 Milz is recommending the investment corporation accept the Colerain Resource Center property and the loan from the trustees and authorize execution of agreements necessary to push the project forward. Jennie Key, Cincinnati.com, "Colerain plan takes down 'blighted' motel," 25 June 2018 The trustees projected that wouldn’t work past mid-1983. Ken Fisher, USA TODAY, "4 Social Security myths and the reasons why they're overblown," 24 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

18 Apr 2019

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 How to pronounce trustee (audio) \

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 How to pronounce trustee (audio) \

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

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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More from Merriam-Webster on trustee

Rhyming Dictionary: Words that rhyme with trustee

Spanish Central: Translation of trustee

Nglish: Translation of trustee for Spanish Speakers

Britannica English: Translation of trustee for Arabic Speakers

Britannica.com: Encyclopedia article about trustee

Comments on trustee

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