trustee
noun
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Definition of trustee
(Entry 1 of 2)
trustee
verbDefinition of trustee (Entry 2 of 2)
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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 trusteesRecent Examples on the Web: Noun
University spokesman Tim Doty tells CBS MoneyWatch that uninformed parties have contacted the university president's office and its board of trustees in hopes of reaching Purdue Pharma execs. — Megan Cerullo, CBS News, "Purdue University must remind people it has no ties to Purdue Pharma," 3 Sep. 2019 Last week, it was announced that the couple just hired Karen Blackett as the first trustee of the Sussex Royal Foundation. — Erica Gonzales, Harper's BAZAAR, "Kate Middleton and Prince William Rename Their Royal Charity After Prince Harry and Meghan Markle Start Their Own," 28 Aug. 2019 Koch was for many years a trustee of Reason magazine and a benefactor of the kind of politics associated with it. — Kevin D. Williamson, National Review, "A Different Kind of ‘Right-Wing’," 25 Aug. 2019 Before the auction, Epstein and Trump each tried to work the ref; the trustee in the case, Joseph Luzinski, recalls being lobbied by both camps. — Beth Reinhard, sun-sentinel.com, "Trump and Epstein partied together. Then a Palm Beach mansion came between them.," 31 July 2019 That's what she's done for the past 24 years as a trustee in Springfield Township. — Scott Wartman, Cincinnati.com, "Gwen McFarlin may be the biggest name in Greater Cincinnati politics you haven't heard of.," 2 July 2019 Culverhouse, a real estate investor and lawyer from Florida, pointed to Ivey's seat on the university's 15-member board of trustees in a Washington Post op-ed written in response to the school's decision. — Joey Garrison, USA TODAY, "Alabama mega donor blames governor after university returns $21.5M amid abortion law dispute," 8 June 2019 At that time, Gunn said Gray was a chairman of the board of trustees of Southwestern Christian College - the same institution Gunn’s church supported via fundraisers. — al, "UNA’s first black student (and newest board of trustees member) reflects on historic role," 29 July 2019 Jonathan Pertuit of Claycomb Associates reviewed with trustees the ongoing conversion of the two-story section of the old high school to an administration building. — Staff Report, Houston Chronicle, "Demographic report tells Needville ISD of growth ahead," 30 June 2019These 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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More Definitions for trustee
trustee
nounFinancial 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
See the full definition for trustee in the English Language Learners Dictionary
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noun
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Kids Definition of trustee
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trustee
noun
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Legal Definition of trustee
(Entry 1 of 2)