Two terms that are often used in estate planning discussions are “Trustor” or “Trustee”. What is the difference between a trustee and a trustor?
What is a Trustor?
A trustor is the title of a person who establishes trust. This person can also be called the trust settlor or grantor.
One person, or a couple, can be the trustor. They determine the terms of the trust, the beneficiaries, and the distribution of their assets. They also decide how to fund the trust and what support they will transfer. They will also choose a trustee to manage their trust.
What is a Trustee?
The trustee is responsible for managing the trust. They manage the trust’s assets, pay taxes, and distribute the trust’s assets to the beneficiaries upon the trustor’s death.
Trustors choose a trusted, responsible friend or family member to serve as their trustee. They may choose to have a professional fiduciary serve as trustee if they don’t know anyone who meets these criteria.
Is It Possible for a Trustor to Be the Same Person as a Trustee?
The type of trust created will determine whether the trustee and trustor can be the same person. A revocable trust that can be used to avoid probate is the most popular type of trust.
The trustee and the trustor are in fact the same person when they create a revocable Trust. The trustor manages their assets in the same way it did before creating the trust. The trustee role is taken over by the successor trustee if the original trustor dies or becomes incapacitated.
This article was written by Alla Tenina. Alla is one of the best bankruptcy attorneys in Los Angeles California, and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.