Trustor

Overview

A trustor, also known as a grantor or settlor, is the person who creates and funds a trust by transferring their assets into it. This individual is essentially the "trust maker" who establishes the terms and conditions of how their assets should be managed and distributed.

Key Responsibilities of a Trustor

1. Trust Creation

• Determines the type of trust to establish
• Sets specific terms and conditions
• Names beneficiaries
• Appoints a trustee

2. Asset Transfer

• Funds the trust with assets
• Ensures proper documentation
• Maintains records of transferred property
• Updates asset titles as needed

3. Trust Management

• May retain certain powers over the trust
• Can modify or revoke the trust (if revocable)
• Reviews and updates trust provisions
• Monitors trustee performance

Types of Trustors

Individual Trustor

• Single person creating a trust
• Complete control over trust decisions
• Common in personal estate planning

Joint Trustors

• Usually married couples
• Share decision-making authority
• Both contribute assets to the trust

Differences Between Similar Terms

Frequently Asked Questions

Can a trustor also be a trustee?

Yes, in many cases, especially with revocable living trusts, the trustor often serves as the initial trustee.

Can a trustor change their mind about a trust?

It depends on the type of trust:

• Revocable Trust: Yes, can be modified or revoked
• Irrevocable Trust: Generally no, cannot be changed

Can there be multiple trustors?

Yes, multiple people can serve as trustors, commonly seen with married couples creating joint trusts.

What happens to the trustor's role after death?

The trustor's control ends upon death, and the successor trustee takes over management of the trust.

Summary

Understanding the role of a trustor is fundamental to estate planning. As the creator of the trust, the trustor holds significant responsibility in establishing the framework for how their assets will be managed and distributed. Whether creating a simple living trust or a complex estate plan, the trustor's decisions shape the future of their legacy and their beneficiaries' financial security.

Important Note: While this information provides a general overview, consulting with a qualified estate planning attorney is recommended for specific guidance tailored to individual circumstances.

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Related Terms

Synonyms:

• Grantor
• Settlor

Antonyms:

• Trustee
• Beneficiary

Related Terms:

• Estate Planning
• Trust
• Asset Transfer
• Trust Administration
• Revocable Trust
• Irrevocable Trust
• Beneficiary
• Successor Trustee
• Estate Plan
• Legacy Planning

These terms are closely associated with the role and responsibilities of a trustor in the context of estate planning. Synonyms like "grantor" and "settlor" are used interchangeably to refer to the individual who establishes the trust. Antonyms like "trustee" and "beneficiary" represent the other key parties involved in a trust arrangement. The related terms cover the broader estate planning landscape, including the different types of trusts, the transfer of assets, and the management of the trust after the trustor's passing.