# Trustee: Definition and How It Works in California

> A trustee is the person or institution that holds and manages trust property for the beneficiaries.

Source: https://ridleylawoffices.com/estate-planning-glossary-california/trustee/

By Eric Ridley, attorney, Ridley Law. Updated September 2026.

A **trustee** is the person or institution that holds and manages trust property for the beneficiaries, according to the terms the settlor set out in the trust document.

## How it works in California

A trustee’s authority comes from the trust document itself, not from a court appointment, which is what separates the role from an executor. See [how a trustee differs from an executor in California](https://ridleylawoffices.com/trustee-vs-executor-california-guide/) for that comparison.

A trustee owes fiduciary duties to the beneficiaries under the Probate Code, including keeping them reasonably informed (Prob. Code, § 16060), managing trust property prudently, keeping trust assets separate from personal assets, and administering the trust according to its terms rather than the trustee’s own preferences.

A trust can name one trustee or several acting together, and it can name a corporate trustee, such as a bank or trust company, instead of or alongside an individual.

## Why it matters

For example, a trustee who invests trust funds the same way they invest their own money, without regard to the beneficiaries’ needs, can be personally liable for the resulting losses.

## Common mistakes

New trustees sometimes treat the role as informal because a family member named them, when the legal duties are the same regardless of who holds the office.

## Related terms

- [Beneficiary](https://ridleylawoffices.com/estate-planning-glossary-california/beneficiary/): the person a trustee manages trust property for.
- [Certification of Trust](https://ridleylawoffices.com/estate-planning-glossary-california/certification-of-trust/): proves a trustee’s authority without disclosing the whole trust.
- [Executor](https://ridleylawoffices.com/estate-planning-glossary-california/executor/): the will-based counterpart to a trustee.
- [Fiduciary Duty](https://ridleylawoffices.com/estate-planning-glossary-california/fiduciary-duty/): the legal standard every trustee must meet.
- [Heggstad Petition](https://ridleylawoffices.com/estate-planning-glossary-california/heggstad-petition/): fixes an asset a trustee never received formal title to.
- [HEMS Standard](https://ridleylawoffices.com/estate-planning-glossary-california/hems-standard/): a common limit on a trustee’s discretion to distribute.
- [Probate Bond](https://ridleylawoffices.com/estate-planning-glossary-california/probate-bond/): insurance a trustee sometimes has to post.
- [Probate Code Section 850 Petition](https://ridleylawoffices.com/estate-planning-glossary-california/probate-code-850-petition/): resolves a dispute over what a trustee actually owns.
- [Settlor](https://ridleylawoffices.com/estate-planning-glossary-california/settlor/): the person who creates the trust a trustee administers.
- [Special Needs Trust](https://ridleylawoffices.com/estate-planning-glossary-california/special-needs-trust/): a trust a trustee must manage without disqualifying a disabled beneficiary from benefits.
- [Successor Trustee](https://ridleylawoffices.com/estate-planning-glossary-california/successor-trustee/): takes over when the original trustee cannot continue.
- [Trust Administration](https://ridleylawoffices.com/estate-planning-glossary-california/trust-administration/): the full process a trustee carries out.
- [Trust Decanting](https://ridleylawoffices.com/estate-planning-glossary-california/trust-decanting/): a power some trustees have to update a trust’s terms.
- [Trustee Removal](https://ridleylawoffices.com/estate-planning-glossary-california/trustee-removal/): a court process for replacing a trustee who fails at the role.

Part of the [California estate planning glossary](https://ridleylawoffices.com/estate-planning-glossary-california/). For the full treatment, see [Executor vs. Trustee in California](https://ridleylawoffices.com/trustee-vs-executor-california-guide/).