While the true definition of any term in this area will be controlled by the Trust Agreement, and the Statute, certain general definitions might be helpful for discussion purposes. One such definition is that of the Resident Trustee.
Generally speaking, when we refer to a Resident Trustee, we are referring to a limited trustee whose role is only to provide for the statutory requirement that one or more of the trustees must be located in (resident) Delaware. The terms of the trust agreement specify which duties (if any) the resident trustee shall be empowered to perform, such as to file the Certificate of Trust with the Secretary of State. The trust agreement usually also indemnifies the resident trustee and clearly states that the resident trustee is to manage no assets and take no action other than as narrowly permitted by the agreement. In many regards this type of trustee is similar to a Registered Agent of a corporate entity.
Resident Limited serves its clients in this role, that of the limited resident trustee. Resident Limited manages no assets and performs no exercise of independent judgment or action. It merely serves as a resident trustee for Statutory Trusts (formerly known as Business Trusts) in Delaware.