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In this tutorial, Joe from Prep Agent discusses the concept of a trustee, emphasizing that the importance of understanding this can vary by state. He simplifies the concept by explaining that a trust deed involves three parties: trustor, trustee, and beneficiary. The trustor is a person seeking a loan to buy a house. The trustee is the lender, such as a bank, while the beneficiary is the party receiving the loan. It is essential to remember these three parties in a trust deed arrangement.