Trustee Account (Noun)
Meaning
A savings account deposited by someone who makes themselves the trustee for a beneficiary and who controls it during their lifetime; afterward the balance is payable to the previously named beneficiary.
Classification
Nouns denoting possession and transfer of possession.
Examples
- She set up a trustee account for her granddaughter's education expenses, naming herself as the trustee and her granddaughter as the beneficiary.
- The trustee account allowed him to manage the funds during his lifetime and ensured that his niece would receive the balance after his passing.
- Her parents created a trustee account in her name, which would be transferred to her when she turned 18 years old.
- The couple established a trustee account for their young son, with the understanding that the funds would be used for his future education and well-being.
- By setting up a trustee account, she was able to save for her nephew's college tuition while maintaining control over the funds until he was ready to use them.