A trustee is a separate legal entity and can be either an individual or a company, which accepts the responsibility of holding rights or property so that the value accrues to the beneficiaries. The obligations of the trustee concerning the property of the Trust will be regulated according to the terms of the deed constituting the trust, and the law of the trust. The trustee is personally liable for his actions as a trustee and has the power and the duty in respect of which he is accountable in law, to manage, employ or dispose of the assets in accordance with the terms of the trust document and the special duties imposed upon him by law. Trust property can include cash, securities, real estate, etc., situated anywhere in the world providing the trustee can obtain a legitimate title to the property. The importance of the Trust concept in common law jurisdictions is reflected in its special position and use in the fields not only of tax planning but also of property law, business law, family law and the law of estates.
Most wealthy people prefer to decide for themselves how their assets are to be passed on at death.
For example, a wealthy individual will probably wish to make gifts not only to relatives but also to charities and perhaps for other public purposes. Arrangements of this kind are best made before death although they will continue to have effect after death. While a Will can achieve some of these objectives, a Trust involving the legal transfer of ownership of assets to trustees with defined objectives as to how and for whose benefit the assets are to be held and administered is probably the ideal medium. Where the death of a person, particularly a wealthy individual takes place, in the absence of a Trust, it will be necessary to obtain probate of any Will or Wills, or in the case of intestacy a grant, or grants of letters of administration. This is a bureaucratic process which normally involves considerable delay, expense and publicity.