Which entities can serve as trustees of a trust?

The assertion that only banks and trust companies with relevant charters can serve as trustees of a trust is not entirely accurate. In many jurisdictions, the law allows for a wider range of parties to serve as trustees. While banks and trust companies are certainly qualified and commonly act as trustees due to their expertise in managing assets and fulfilling fiduciary duties, individuals—including those over the age of 18—may also serve as trustees unless otherwise restricted by the trust instrument or local laws.

Any individual can serve as a trustee, provided they have the legal capacity to do so and are not disqualified from serving (due to factors such as bankruptcy or having a felony conviction). Furthermore, family members of the settlor can act as trustees as well, which allows for flexibility in estate planning. Legal professionals can also take on trustee roles, but they are not the only group allowed to do so.

Understanding the potential roles of trustees helps clarify the wide latitude in selecting trustees based on the specific needs of the trust and the goals of the settlor. The law accommodates a variety of trustee options to ensure that trusts can be effectively managed according to the intentions of the person creating the trust.