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 West Virginia, a trustee is an individual or entity appointed to manage a trust on behalf of the beneficiaries, as per the terms set out by the grantor in the trust agreement. The grantor may also serve as the trustee in some estate planning trusts. Trust agreements typically outline provisions for successor trustees who will take over the trustee's responsibilities in events such as death, incapacity, resignation, or removal of the current trustee. Removal of a trustee can occur through a court order, often initiated by a lawsuit from the beneficiaries if they believe the trustee is not fulfilling their obligations. Trustees in West Virginia are bound by a fiduciary duty, which is a legal obligation to act in the best interest of the beneficiaries. This duty encompasses both a duty of care, ensuring that they manage the trust assets prudently and in accordance with the trust agreement, and a duty of loyalty, which requires them to avoid conflicts of interest and to prioritize the interests of the beneficiaries above their own.