Editing Trust (law) (section)

===Trustees===
A trust may have multiple trustees, and these trustees are the legal owners of the trust's property, but have a [[fiduciary]] duty to beneficiaries and various duties, such as a duty of care and a duty to inform.<ref>Edward Jones Trust Company. [http://www.edwardjones.com/groups/ejw_content/documents/document/web043726.pdf Fundamental Duties of a Trustee: A Guide for Trustees in a post-Uniform Trust Code World] {{Webarchive|url=https://web.archive.org/web/20150723180706/https://www.edwardjones.com/groups/ejw_content/documents/document/web043726.pdf |date=23 July 2015 }}.</ref> If trustees do not adhere to these duties, they may be removed through a legal action. The trustee may be either a [[natural person|person]] or a [[Juristic person|legal entity]] such as a [[company]], but typically the trust itself is not a legal entity and any litigation involving the trust must include the trustee as a party.<ref name="Moffat">{{cite book |last1=Moffat |first1=Graham |title=Trusts Law: Text and Materials |date=2005 |publisher=Cambridge University Press |location=Cambridge |isbn=9781139445283 |page=18 |edition=4th |url=https://books.google.com/books?id=EXebm5FeaIcC&pg=PA18 |access-date=20 March 2023 |archive-date=12 April 2023 |archive-url=https://web.archive.org/web/20230412073700/https://books.google.com/books?id=EXebm5FeaIcC&pg=PA18 |url-status=live }}</ref> A trustee has many rights and responsibilities which vary based on the jurisdiction and trust instrument. If a trust lacks a trustee, a court may appoint one.

The trustees administer the affairs attendant to the trust. The trust's affairs may include prudently investing the assets of the trust, accounting for and reporting periodically to the beneficiaries, filing required tax returns and other duties. In some cases dependent upon the trust instrument, the trustees must make discretionary decisions as to whether beneficiaries should receive trust assets for their benefit. A trustee may be held personally liable for problems, although fiduciary liability insurance similar to [[directors and officers liability insurance]] can be purchased. For example, a trustee could be liable if assets are not properly invested. In addition, a trustee may be liable to its beneficiaries even where the trust has made a profit but consent has not been given.<ref>{{Cite web|url=http://www.trusts.it/admincp/UploadedPDF/200801171738350.jEnghouseBoardmanPhipps19661103.pdf|title=Boardman v Phipps [1966<nowiki>]</nowiki> UKHL 2|access-date=4 March 2017|archive-date=4 August 2017|archive-url=https://web.archive.org/web/20170804220851/http://www.trusts.it/admincp/UploadedPDF/200801171738350.jEnghouseBoardmanPhipps19661103.pdf|url-status=live}}</ref> However, in the United States, similar to directors and officers, an [[waiver|exculpatory clause]] may minimize liability; although this was previously held to be against public policy, this position has changed.<ref>[http://www.americanbar.org/content/dam/aba/publications/rpte_ereport/2009/june/te_robert_sacks.authcheckdam.pdf Last Beneficiary Standing: Identifying the Proper Parties in Breach of Fiduciary Cases] {{Webarchive|url=https://web.archive.org/web/20170801145557/https://www.americanbar.org/content/dam/aba/publications/rpte_ereport/2009/june/te_robert_sacks.authcheckdam.pdf |date=1 August 2017 }}. American Bar Association, Section of Real Property, Trust, & Estate Law. 20th Annual Real Property & Estate Planning Symposia.</ref>

In the United States, the [[Uniform Trust Code]] provides for reasonable compensation and reimbursement for trustees subject to review by courts,<ref>[http://uniformlaws.org/ActSummary.aspx?title=Trust%20Code Trust Code Summary] {{Webarchive|url=https://web.archive.org/web/20180130055421/http://uniformlaws.org/ActSummary.aspx?title=Trust%20Code |date=30 January 2018 }}. Uniform Law Commission.</ref> although trustees may be unpaid. Commercial banks acting as trustees typically charge about 1% of assets under management.<ref>Schanzenbach MM, Sitkoff RF. (2007). [https://ssrn.com/abstract=868761 Did Reform of Prudent Trust Investment Laws Change Trust Portfolio Allocation?]. Harvard Law School John M. Olin Center for Law, Economics and Business Discussion Paper Series. Paper 580.</ref>