The trustee is the legal entity that is nominated by the settlor to administer and maintain the trust fund for the benefit of the beneficiaries nominated by the settlor, once the fund has been established by the settlor through the process referred to above. The trustee can either be a natural person or a corporate entity.
Because it is the trustee’s role to administer the trust property for the benefit of the beneficiaries and not for the benefit of itself, the trustee has a fiduciary obligation to the beneficiaries of the trust fund to insure that best interests of the beneficiaries is always paramount and maintained at all costs. The trustee can find itself in serious difficulty if this fiduciary obligation is breached whereby the trustee is conflicted by its own self interest or competing interests. This is similar to the fiduciary obligation of a company director, who has to act in the best interests of the company shareholders.
Once nominated by the settlor, the trustee can remain in the role of trustee until such time as it either determines to resign from the appointment of its own free will, or it may be that its term of appointment is limited by the terms of the trust deed, or until it is directed to resign by the appointor of the trust.