A trustee is a third-party administrator who manages assets on behalf of a third party. This person is responsible for making investment and expenditure decisions on behalf of the beneficiary, such as deciding which investment vehicles to use and which beneficiary expenses to pay. A trustee should be characterized by a high level of integrity, in order to make the best possible decisions on behalf of the beneficiary.
There are a number of situations in which a trustee may be appointed, such as:
To administer the assets of a bankrupt business
To administer the assets of a trust fund on behalf of a minor
To administer funds that have been donated for long-term use to a nonprofit entity