What is a Trustee?
A trust is an equitable arrangement whereby the ownership of the trust assets is divided between two parties, such that one person or entity holds the legal title to the property (the trustee) whilst another person (the beneficiary) retains the beneficial (or equitable) ownership of the trust assets.
A trustee may be a corporate entity , a natural or legal person who administers the trust assets for the benefit of a beneficiary(ies). It is normally good practice for the management and oversight of significant funds to be segregated so that the person or entity (fund manager) managing the investments of the funds of the investor or trust does not hold or administer investment. This reduces the risk of the loss due to fraud or negligence.
In many jurisdictions, trust companies are licensed and regulated and trusts are governed by legislation. In Singapore the relevant legislation would be the Trust Companies Act 2005 as well as the . The Trustees Act 1967 which provides the legislative framework for trustees of trusts established under Singapore law.