Definition
The term trustor refers to the entity that provides assets to a trustee, which is responsible to hold and maintain the assets on behalf of a beneficiary. The trustor is the person or business that gifts a trust's assets to a beneficiary.
Explanation
Also known as the grantor and settlor, a trustor provides the assets to the trustee, which maintains them on behalf of the trust's beneficiary. This is one of three essential roles individuals may play when establishing a trust.
Trustor: the party that donates the assets to the trust.
Trustee: the party that has a fiduciary responsibility to protect the assets of the trust.
Beneficiary: the party that benefits directly from the assets placed in the trust.
When a blind trust is established, the trustor is frequently also the beneficiary. The trustor can also act in the role of trustee.
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