IVA Glossary
T
Trustee
Generally, the term "trustee" refers to an individual or an organization which manages the assets of another entity for that entity's benefit. Trustees are legally obliged to make fair decisions in trust-related issues, and these decisions must be made according to the trustee's interests. Trustees might be liable for damages caused by bad decisions. On the other hand, they might get payment in exchange for their services. Both the consequences of a trustee's actions, and the payment modes should be mentioned in the trust deed.
Apart from the term's common usage, "trustee" is used under the 1925 Trustee Act denoting different kinds of insolvency appointments. Basically the term has two main meanings under this Act, one used related to English bankruptcy cases, and another used in Scottish trust deeds.
When talking about bankruptcy, trustee refers to a licensed insolvency practitioner who is made responsible to manage the estate of the person who went bankrupt. Trustee has a similar meaning when talking about a deed of arrangement. In this latter case trustee denotes a licensed insolvency practitioner who is responsible to manage the estate of that person who have entered into a deed.
Moreover, the term "trustee" might also refer to a so-called administration order. In this case, the trustee is that person who deals with the affairs and the assets of a deceased debtor.
Apart from the term's common usage, "trustee" is used under the 1925 Trustee Act denoting different kinds of insolvency appointments. Basically the term has two main meanings under this Act, one used related to English bankruptcy cases, and another used in Scottish trust deeds.
When talking about bankruptcy, trustee refers to a licensed insolvency practitioner who is made responsible to manage the estate of the person who went bankrupt. Trustee has a similar meaning when talking about a deed of arrangement. In this latter case trustee denotes a licensed insolvency practitioner who is responsible to manage the estate of that person who have entered into a deed.
Moreover, the term "trustee" might also refer to a so-called administration order. In this case, the trustee is that person who deals with the affairs and the assets of a deceased debtor.
