Definitions
- Referring to a person or organization responsible for managing and administering a trust fund. - Talking about a member of a board of trustees who oversees the management of an organization or institution. - Describing someone who is entrusted with the responsibility of managing assets or property on behalf of another person or entity.
- Referring to a person or organization responsible for the care, maintenance, and protection of a building or property. - Talking about a person who is responsible for the safekeeping and management of financial assets or securities. - Describing someone who has legal custody or guardianship over a minor or an individual who is unable to manage their own affairs.
List of Similarities
- 1Both trustee and custodian are responsible for managing and overseeing assets or property.
- 2Both have a fiduciary duty to act in the best interest of the beneficiaries or owners of the assets.
- 3Both require a high level of trust and responsibility.
- 4Both may be appointed by a court or designated by an individual or organization.
What is the difference?
- 1Scope: Trustees manage and administer trust funds, while custodians are responsible for the physical care and safekeeping of assets.
- 2Legal status: Trustees have a legal obligation to manage assets according to the terms of the trust agreement, while custodians may not have a legal obligation beyond the terms of their contract or agreement.
- 3Authority: Trustees have the authority to make decisions regarding the management and distribution of assets, while custodians typically do not have decision-making power.
- 4Accountability: Trustees are accountable to the beneficiaries of the trust, while custodians are accountable to the owners of the assets or property.
- 5Context: Trustees are commonly associated with financial management, while custodians are commonly associated with property management or guardianship.
Remember this!
Trustee and custodian are both responsible for managing and overseeing assets or property, but they differ in their scope, legal status, authority, accountability, and context. Trustees manage and administer trust funds, have a legal obligation to manage assets according to the terms of the trust agreement, and have decision-making power. Custodians are responsible for the physical care and safekeeping of assets, may not have a legal obligation beyond the terms of their contract or agreement, and typically do not have decision-making power.
