Co-Trustee Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Co-Trustee, written in plain English, along with examples of how it is used.
What is Co-Trustee?
When a trust is managed by more then one trustee who have equal rights and powers they are called co-trustees.They can only act jointly unless specified when any one trustee can act independently.
History and Meaning of Co-Trustee
Co-trustee is a legal term used to describe a trust that is managed by more than one trustee who have equal rights and powers. It means that each trustee has a full and equal right to manage and control the trust assets. Commonly, co-trustees are appointed to ensure that the trust is managed properly and without any conflicts of interest.
Typically, co-trustees are appointed in situations where the trust has significant assets, complex investments, or multiple beneficiaries with conflicting interests. Co-trustees must work together to make decisions, and any action taken by one co-trustee must be approved by the other(s). In some cases, co-trustees may be permitted to act independently in certain situations or for specific decisions that fall within their area of expertise.
Examples of Co-Trustee
John and Jane were appointed as co-trustees of their father's trust. They must work together to manage the trust assets and make decisions regarding distributions to beneficiaries.
A charitable trust is managed by three co-trustees who are responsible for ensuring that the trust assets are used for the intended purpose of supporting the designated charity.
A trust with multiple beneficiaries has two co-trustees who must work together to ensure that each beneficiary receives their full distribution according to the terms of the trust.
Legal Terms Similar to Co-Trustee
- Trustee - A person or entity appointed to manage a trust.
- Successor Trustee - A trustee who takes over management of a trust if the original trustee is unable or unwilling to continue serving.
- Co-Executor - A legal term used to describe two or more individuals appointed to act as executors of a will.