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Simple English definitions for legal terms
interim trustee
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A quick definition of interim trustee:
An interim trustee is a person appointed to manage and protect property for someone else's benefit. They have legal responsibility to make sure the property is used only for the beneficiary's benefit and follow the instructions in the trust agreement. In bankruptcy cases, an interim trustee is appointed to perform all the duties of a trustee until a regular trustee is selected.
A more thorough explanation:
An interim trustee is a trustee appointed to perform all the functions and duties of a trustee until the regular trustee is selected and qualified. This term is commonly used in bankruptcy cases.
Before the meeting of creditors, the interim trustee often preliminarily investigates the debtor's assets and financial affairs. For example, if a company files for bankruptcy, an interim trustee may be appointed to manage the company's assets until a permanent trustee is appointed.