Written by attorneys · grounded in primary & secondary sources — see below
A fiduciary who holds legal title to property for the benefit of another and manages the property according to the terms of a trust or other legal obligation.
Tyrone Tran contracts to sell his warehouse to Tracy Torres. Before closing a fire destroys the building. Under the majority rule Tyrone holds legal title as trustee for Tracy and bears no risk of loss that would allow her to avoid the contract.
Trevor Tate agrees to purchase land from Thomas Thompson. Before the deed is delivered the property is damaged by flood. Equity treats Thomas as trustee holding legal title for Trevor so the risk of loss falls on the buyer.
Tabitha Taylor a member of True North Logistics uses company funds to purchase equipment for her personal venture. She must account to the company and hold the equipment as trustee for its benefit.
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Theodore Tucker the general partner of Tundra Resources receives a secret commission on a partnership deal. He must account to the limited partnership and hold the commission as trustee for the entity.
Tracy Torres a partner in Trinity Pharmaceuticals diverts partnership revenue to a personal account. She must account to the partnership and hold the funds as trustee for the benefit of the firm.
Thomas Thompson executes a will devising his estate to the trustee of a revocable trust he created during life. The devise is valid even though the trust is amendable and the property passes outside probate.
A trustee must manage the property solely for the beneficiary's benefit and may not retain personal profits derived from the property or position. The duty requires accounting for any benefit obtained through use of the property.
Once a binding contract forms the seller holds legal title as trustee for the buyer. This status places the risk of loss on the buyer in most jurisdictions and prevents the buyer from avoiding the contract due to later damage.
A will may devise property to the trustee of a trust created during the testator's life or at death provided the trust is identified in the will. The devise remains valid even if the trust is revocable or later amended.
…unconstitutional, saying that the existing owners could “withhold consent for selfish reasons or arbitrarily and may subject the trustee [owner] to their will or caprice.” Id. , at 122. Unlike the billboard cases ( e. g. , Cusack Co. v. City of Chicago , 242 U. S. 526), the Court concluded that the Seattle ordinance was…