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 North Carolina, a trustee is responsible for managing a trust in accordance with the terms set forth by the grantor and the state's trust laws. The trustee's role includes the prudent investment of trust assets, making distributions to beneficiaries, and ensuring the trust complies with tax laws and reporting requirements. North Carolina's trust laws are codified in the North Carolina General Statutes, specifically in Chapter 36C, known as the North Carolina Uniform Trust Code. This code outlines the duties and powers of trustees, the rights of beneficiaries, and the rules for the administration of trusts. A trustee's fiduciary duty is a legal obligation to act in the best interest of the trust's beneficiaries, which includes a duty of care and a duty of loyalty. If a trustee fails to fulfill these duties, beneficiaries may seek legal recourse, which can include the removal of the trustee through court proceedings. Successor trustees, as designated in the trust agreement, step in to manage the trust if the original trustee can no longer serve due to death, incapacity, resignation, or removal by the court.