Call Today 843-548-0157
The Nelson Law Firm
South Carolina Tax Law Attorney

The three main roles in a trust

Trusts vary greatly in their design and purpose. But all trusts do share some similarities. For example, each trust has three main roles in it: trustor, trustee and beneficiary. In today's post, we'll go over what each of these roles means.

What is a trustor?

This is the person who creates a trust and uses his or her property to fund it. So, if you have created and funded a trust, you are typically its trustor. This role is sometimes also referred to as grantor.

Trustors have many choices on what terms to include in trusts they create. Once a trust is formed, how much discretion a trustor has to change its term depends on the type of trust he or she has set up. A revocable trust can be changed, while an irrevocable one typically can't.

What is a trustee?

This is the person charged with managing and distributing the property used to fund the trust.

A trustor could pick a single trustee or multiple co-trustees. He or she also could choose to be the trustee of his or her own trust.

How much discretion a trustee has depends on the terms of a trust. While the trustee role is limited by a trust's terms, it generally is quite powerful. So, it can be important for a trustor to think carefully about who to select as a trustee.

What is a beneficiary?

This is the person the property in a trust is to benefit.

A trust could have a single beneficiary or multiple beneficiaries. A trustor also could set himself or herself as a beneficiary. What particular rights a given beneficiary has, and what benefits he or she is to receive under the trust, are yet another set of things that depend on a trust's terms. 

No Comments

Leave a comment
Comment Information

Contact The Firm - Or Email Me at [email protected]

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy