What is the role of a trustee in a trust arrangement?

The role of a trustee in a trust arrangement is to hold and administer property for the benefit of another. This fiduciary responsibility means that the trustee manages the trust assets according to the terms set forth in the trust document and acts in the best interest of the beneficiaries. The trustee must ensure the assets are properly invested, maintained, and distributed according to the trust's provisions. This management serves to protect the interests of the beneficiaries, who are the individuals or entities benefiting from the trust, while the trustee must adhere to legal and ethical standards in carrying out their duties.

The other options do not accurately reflect the specific responsibilities of a trustee. Selling property to the highest bidder refers more to a real estate auction context rather than trust administration. Managing personal assets suggests a more personal asset management role rather than the specific fiduciary duties involved in a trust. Finally, overseeing the financial activities of the trustor inaccurately portrays the trustee's role, which is more about managing the trust assets than monitoring the trustor's overall financial activities.