corporate trustee
A corporate trustee is a bank, trust company, or investment firm that is appointed to administer a trust. Individuals often select corporate trustees for their professional expertise, resources, and continuity, which family members or friends may lack. Corporate trustees are bound by fiduciary duties to act in the best interests of the trust and to carry out the settlor’s intentions, and they are generally considered more impartial than individual trustees.
Corporate trustees typically charge annual fees based on a percentage of the trust’s assets, commonly ranging from 1% to 2%, depending on the size and complexity of the trust. While this can be expensive, the percentage-based fee structure aligns the trustee’s incentive with the growth of the trust’s assets.
[Last reviewed in August of 2025 by the Wex Definitions Team]
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