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 New Hampshire, 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 management of trust assets, ensuring that the trust's purposes are fulfilled, and acting in the best interests of the beneficiaries. New Hampshire Revised Statutes Annotated (RSA) Title LVI, Chapters 564-A to 564-E, known as the New Hampshire Trust Code, governs the administration of trusts within the state. The Trust Code outlines the duties and powers of trustees, including the fiduciary duty to act with care, skill, and caution, and to avoid conflicts of interest. Successor trustees, as designated in the trust agreement, will take over the trustee's responsibilities under the circumstances described, such as death or incapacity of the current trustee. If a trustee fails to uphold their fiduciary duties, beneficiaries may seek legal recourse, which could result in the trustee's removal by a court order.