In an estate in trust, who is the party who creates the trust?

In an estate in trust, who is the party who creates the trust?

• A. Trustor
• B. Trustee
• C. Beneficiary
• D. Lender

Answer: (A)

The party who creates a trust is the trustor. The trustor drafts the trust agreement and transfers property into the trust, setting the rules and terms that will govern how the assets are managed and who will benefit. The trustee then takes legal title to the assets and administers them according to those terms for the benefit of the beneficiaries. The beneficiary is the person or group who will receive benefits from the trust, and a lender isn't involved in creating the trust. In an estate in trust, the estate is placed into the trust by the trustor.

The party who creates a trust is the trustor. The trustor drafts the trust agreement and transfers property into the trust, setting the rules and terms that will govern how the assets are managed and who will benefit. The trustee then takes legal title to the assets and administers them according to those terms for the benefit of the beneficiaries. The beneficiary is the person or group who will receive benefits from the trust, and a lender isn't involved in creating the trust. In an estate in trust, the estate is placed into the trust by the trustor.