What does a trustee generally do?

A trustee generally holds property in trust for another party, which is a fundamental responsibility in the realm of trusts and estate planning. This role involves managing and administering the assets placed in the trust according to the wishes of the person who created the trust, known as the grantor or settlor. The trustee has a fiduciary duty to act in the best interests of the beneficiaries, ensuring that the trust is managed according to its terms and that the beneficiaries receive their entitlements as specified.

This role may involve various responsibilities, such as making investment decisions regarding the trust assets, distributing income or principal to the beneficiaries, and ensuring that tax obligations related to the trust are met. The trustee essentially serves as a steward of the trust property, balancing the interests of the grantor's intentions with the needs of the beneficiaries.

Other options, such as managing personal investments, executing wills, or providing financial advice, do not accurately reflect the core responsibility of a trustee. While there may be some overlap in financial management or advisory roles, these functions are distinct from what a trustee is specifically tasked to do within the framework of a trust.