Table of Contents
Who Bonds trustee?
A bond trustee is hired by a bond issuer and oversees the implementation of a bond or trust indenture, which is a contract between a bond issuer and a bondholder. The trustee has a fiduciary responsibility to act on behalf of the issuer, rather than in its own interests.
Who should be a trustee?
Depending on the type of trust you are creating, the trustee will be in charge of overseeing your assets and the assets of your loved ones. Most people choose either a friend or family member, a professional trustee such as a lawyer or an accountant, or a trust company or corporate trustee for this key role.
Is the trustee the owner of the trust?
The trustee is the legal owner of the property in trust, as fiduciary for the beneficiary or beneficiaries who is/are the equitable owner(s) of the trust property. Trustees thus have a fiduciary duty to manage the trust to the benefit of the equitable owners.
What is an example of a trustee?
The definition of a trustee is a person or a member of a board given control over the property or affairs of another. A person who manages an inheritance left for a child and who distributes the money to the child is an example of a trustee.
Does a trustee have to be bonded?
(a) A trustee is not required to give a bond to secure performance of the trustee s duties, unless any of the following circumstances occurs: (d) Except as otherwise provided in the trust instrument or ordered by the court, the cost of the bond shall be charged against the trust. …
What does an indenture trustee do?
A person that manages the relationship between an issuer and holders of the issuer’s securities, usually when those securities have features requiring more administrative involvement than in the case of equity securities such as, for example, debt obligations or warrants.
Can a family member be a trustee?
One choice is a professional trustee–a bank or trust company or an individual who is in the business of serving as a trustee. The other choice is to name a family member to serve as trustee, such as a sibling of the trust beneficiary or some other trusted family member.
Can a trustee also be a beneficiary?
The short answer is yes, a trustee can also be a trust beneficiary. One of the most common types of trust is the revocable living trust, which states the person’s wishes for how their assets should be distributed after they die. In many family trusts, the trustee is often also a beneficiary.
Does a trustee own the property that is held on trust?
When property is “held in trust,” there is a divided ownership of the property, “generally with the trustee holding legal title and the beneficiary holding equitable title.” The trust itself owns nothing because it is not an entity capable of owning property.
Who has more power a trustee or beneficiary?
The trustee has the power to make management decisions regarding the trust, but the beneficiaries do not wield such power. However, the law gives beneficiaries certain rights, like requesting a trust accounting and receiving assets from the trustee in a timely manner.
What a trustee Cannot do?
A trustee cannot comingle trust assets with any other assets. If the trustee is not the grantor or a beneficiary, the trustee is not permitted to use the trust property for his or her own benefit. Of course the trustee should not steal trust assets, but this responsibility also encompasses misappropriation of assets.