In a trust, who is the Trustee?

• A. The beneficiary
• B. The grantor
• C. The third party that holds and manages funds
• D. The bank teller

Answer: (C)

A trust is managed by the trustee, the person or institution designated to hold and administer the trust assets for the benefit of the beneficiaries. The trustee holds legal title to the trust property and carries out the terms of the trust with fiduciary duties—acting loyally, prudently, and impartially, managing investments, and distributing assets as directed. This is why the trustee is described as the third party that holds and manages funds. The beneficiary is the person who ultimately receives benefits from the trust, not the manager. The grantor creates the trust and funds it, and while a bank or trust company can serve as trustee, a bank teller is not involved in administering the trust.