A trustee is a person or entity designated by a person who creates a trust (grantor, settlor, or trustor) to manage and administer the trust for the benefit of the named beneficiary or beneficiaries. The trustee of a trust created for estate planning purposes is often the grantor, settlor, or trustor who created and funded the trust.
A trust agreement may designate one or more successor trustees who will become the trustee if the previous trustee dies, is unable to continue to serve as trustee, resigns as trustee, or is removed by court order following a lawsuit filed by the beneficiary or beneficiaries of the trust.
A trustee has a fiduciary duty to the beneficiary or beneficiaries of the trust. A fiduciary duty includes the highest duty of care (performance of duties under the terms of the trust agreement) and of loyalty (avoiding conflicts of interest) recognized in law.
In Georgia, a trustee is responsible for managing a trust in accordance with the terms set forth by the grantor and the state's legal framework. Trustees in Georgia are bound by fiduciary duties, which are the highest standards of care and loyalty in the legal system. These duties require trustees to act in the best interests of the beneficiaries and to manage the trust assets responsibly. The trustee must avoid conflicts of interest and adhere strictly to the trust agreement. If a trustee is unable to fulfill their role due to death, incapacity, resignation, or removal by a court order, a successor trustee, as designated in the trust agreement, will take over the management of the trust. Georgia law, including the Georgia Trust Code, provides the statutory framework governing the administration of trusts and the duties of trustees. Beneficiaries have the right to take legal action if they believe the trustee has breached their fiduciary duties.