Sharpen your legal vocabulary with these three words you should know when creating a Trust!
1. Trustor: The trustor is the person who created the trust. They are responsible for transferring assets into the trust, choosing what provisions will go in the trust and selecting who the trustee and the beneficiary will be.
2. Trustee: The trustee is the person who manages the trust. They are responsible for ensuring that the provisions of the trust are carried out and that payments are made to the beneficiary as required.
3. Beneficiary: The beneficiary of the trust is the person who benefits from the trust. This is the person who receives the payout from assets, and any income the trust generates.
Depending on how your trust is structured, the trustor, trustee and beneficiary, may be the same person. This however, is not a requirement.