The trustor/grantor/settlor is the person who creates the trust. The trustee is the person who manages the assets in the trust.
Who is the trustor of an estate?
Trustor: a person who establishes a trust, typically either an individual person or a married couple. A trustor may also be called a grantor or a settlor. Trustee: a person or persons designated by a trust document to hold and manage the property in the trust.
Is the trustee the buyer or seller?
For the purpose of the sale of the Property, the trustee of the trust is treated as the Seller. Even though Seller is exempt from some obligations, Seller must still comply with many others.
Is the trustor the owner of the trust?
A trustor can either act as the sole trustee or co-trustee of their revocable trust. During their lifetime, the trustor has the power to amend or dissolve a revocable trust and they retain ownership over the trust property for tax purposes.
Can the trustor and trustee be the same person?
In most living trusts created in the United States, the trustor, trustee and beneficiary are all the same person.
What is a trustee do?
The trustee acts as the legal owner of trust assets, and is responsible for handling any of the assets held in trust, tax filings for the trust, and distributing the assets according to the terms of the trust. Both roles involve duties that are legally required.
What means trustor?
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 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.
What is a trustor vs trustee?
The trustor/grantor/settlor is the person who creates the trust. The trustee is the person who manages the assets in the trust. In some instances, the currently acting trustee may not be the original trustor.
What is a trustee on a house?
The trustee is a neutral third-party who holds the legal title to a property until the borrower pays off the loan in full. They’re called a trustee because they hold the property in trust for the lender. … In this case, the trustee would likely sell the property in order to repay the loan.
Who is the trustee on a mortgage?
A mortgage involves only two parties: the borrower and the lender. A deed of trust has a borrower, lender and a “trustee.” The trustee is a neutral third party that holds the title to a property until the loan is completely paid off by the borrower.
Who has more power a trustee or beneficiary?
The trustee has the power to make management decisions regarding the trust, but the beneficiaries do not wield such power. However, the law gives beneficiaries certain rights, like requesting a trust accounting and receiving assets from the trustee in a timely manner.
Can a trustee be a family member?
While in some situations it is appropriate for a sibling or other family member to serve as trustee, in many cases, particularly with a larger trust, naming a family member is not the best decision, for several reasons. … A good trustee needs to actively supervise all trust activity, and it can be a time consuming job.
Can a trustor remove a trustee?
Trust agreements usually allow the trustor to remove a trustee, including a successor trustee. This may be done at any time, without the trustee giving reason for the removal. To do so, the trustor executes an amendment to the trust agreement.