Who is trustor

The simple difference between a Trustee and a Trustor is that while the Trustor creates the Trust and names the Trustee, the Trustee uses the direction given within the Trust document to manage it. Trustor and Trustee work together in the sense that the ultimate goal of any Trust is to safeguard the assets it names, and to one day distribute those assets accordingly.

A Trustee has many responsibilities, including managing all the day-to-day Trust activities and and accounts, overseeing distributions to heirs and investments and perhaps most importantly, filing and paying taxes the Trust may owe annually.

For every activity and responsibility, a Trustee is specifically guided by directions outlined in the Trust. Of course, this direction all comes directly and explicitly from the Trustor at the time the Trust is created. Estate Planning can be a complicated thing. There are often many moving parts, and understanding the common terminology used in the various tools and aspects can help the process be seamless.

Our online Trusts, Wills and Guardianship documents were created by lawyers and Estate Planning experts who understand what it takes to create a solid plan that protects you, your loved ones and your legacy.

Upon the trustor's passing, the trust either continues for the benefit of the beneficiaries or ends, in which case the remaining assets are distributed to the beneficiaries. In order to achieve the desired tax deferral benefits, it is common for the trust to continue beyond the trustor's death, to the benefit of the trustor's children and their descendants. Therefore, the trustee's role is likely to continue for some time after the passing of the trustor.

When creating a living trust, you need to consider your particular situation as it relates to tax laws and possibly to long-term care planning. You can use a DIY legal service to receive assistance determining how a living trust can be part of your estate plan. Contents 3 min read. Edward A. Haman is a freelance writer, who is the author of numerous self-help legal books. He has practiced law in Hawa… Read more.

Living Trusts. You may have established a living trust, but it's not functional until you transfer ownership of your assets to it. Making your living trust will be easier if you think it through and gather necessary information before you sit down to do it. An irrevocable living trust can provide benefits not available with a revocable trust. Learn how an irrevocable trust can avoid taxes, protect property from creditors, and preserve property if Medicaid or other government benefits become desirable.

A living trust can be an effective estate planning tool if you understand what they can and can't accomplish. A revocable living trust allows you to retain control over the assets you've placed in the trust, but there are certain circumstances where an irrevocable living trust is the better option. A living trust is an easy way to plan for the management and distribution of your assets, and you don't need an attorney to do it.

Living Wills. If you're concerned about how to protect your assets from nursing home costs, you're at an advantage if you can plan at least five years out. Forgot your password? Not a Member? Register Here. Schedule an Appointment Call Now Schedule Call Now Portal. Client Portal Click to access your secure portal. Facebook Twitter Github Bitbucket. Glossary of Probate and Estate Planning Terms. Below is a summary of some key estate planning terms.

What is the Definition of a Trustor? The term Trustor is synonymous with Settlor and Grantor. What is the Definition of a Grantor? Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. The term trustor refers to an entity that creates and opens up a trust.

A trustor may be an individual, a married couple, or even an organization. Trustors generally make contributions of property to add to the trust. This can be done by donating money, gifts, and assets to other individuals. Trustors normally set up trusts as part of their estate planning. Trustors do this by transferring their fiduciary duty to a third-party trustee, who maintains the assets in the trust for the benefit of the beneficiaries.

Assets that are commonly served in estate planning include money, properties, vehicles, investments , personal property artwork, jewelry, and other valuables , life insurance policies, and debt. The entity that sets up a trust is called a trustor. Also called a grantor or settlor, this individual hands over the fiduciary duty to another individual or firm. This party is referred to as the trustee.

Both parties meet to determine the formation and details of a trust. Trusts are legal entities that are designed to hold and safeguard someone's assets. As such, they provide a form of legal protection for any assets that the trustor wants to donate to their next of kin or other entities.