What is a trustee?

A trustee is the person or institution responsible for managing a trust's assets according to its terms and in the best interest of the beneficiaries. They handle investments, distributions, taxes, and recordkeeping. With a revocable living trust, you usually serve as your own trustee while you're alive, then a successor trustee takes over when you die or become incapacitated. Choosing a reliable, level-headed trustee is one of the most important decisions in setting up a trust.