What Is the Difference Between a Trustor and Trustee? | Trust Administration Explained
Who is the trustor? Who is the trustee? In this video, RMO LLP Founding Partner Scott Rahn explains the key differences between these two critical roles in trust administration. Whether you’re creating a trust, administering one, or listed as a beneficiary, understanding these roles can help you protect your rights and navigate the trust process effectively.
Full article: https://rmolawyers.com/blog/meanings-...
Frequently Asked Questions:
What is a trustor?
A trustor, also called a settlor, is the individual who creates a trust. They decide which assets go into the trust and who will receive them after their death. The trustor outlines these instructions in a legal trust document.
What is a trustee?
A trustee is the person or entity appointed by the trustor to manage the trust after the trustor’s death. The trustee’s role is to follow the trustor’s instructions and act in the best interest of the beneficiaries.
What is the difference between a trustor and trustee?
The trustor creates the trust and determines how assets should be distributed. The trustee administers the trust and carries out the trustor’s instructions, but does not have discretion to change how assets are distributed.
Can a trustor and trustee be the same person?
Yes, especially in revocable living trusts. The trustor often serves as the initial trustee during their lifetime, retaining control of the trust assets until death or incapacity, when a successor trustee takes over.
What is a successor trustee?
A successor trustee is named to take over trust administration if the original trustee dies, becomes incapacitated, or is unable or unwilling to serve. Naming a successor trustee ensures continuity and prevents delays.
What are a trustee’s responsibilities?
A trustee must manage trust assets responsibly, distribute assets to beneficiaries as outlined in the trust document, maintain records, pay bills and taxes from the trust, and communicate with beneficiaries. They must act in the best interest of the trust at all times.
What is fiduciary duty?
Fiduciary duty is the legal obligation of a trustee to act in the best interest of the trust and its beneficiaries. This includes managing assets prudently, avoiding conflicts of interest, and maintaining transparency.
Can I sue a trustee or contest a trust?
Yes. You may sue a trustee for breach of fiduciary duty if they mismanage assets, act in their own interest, or fail to follow the trust terms. You can also contest a trust if you believe it is invalid, ambiguous, or unfair.
When should I contact a trust litigation attorney?
You should contact a trust litigation attorney as soon as you suspect mismanagement, believe you are not receiving your rightful inheritance, or if there are any disputes about the trust terms or the trustee’s actions.
Do I need a trust litigation attorney near me?
Yes. It’s best to hire a trust litigation attorney familiar with the local probate court where the trust is administered, as local knowledge can be critical in resolving disputes effectively.
About RMO Lawyers:
RMO LLP serves clients throughout California and Texas, with offices in Los Angeles, Orange County, San Diego, Fresno, Pasadena, the Bay Area, Dallas, and Houston.
We are laser-focused on guiding our trustee, executor, beneficiary, heir, conservator, and guardian clients through some of the most complex and emotionally charged issues life can throw them. Our commitment to helping our clients achieve results that not only add to their bottom line but to their peace of mind is at the core of everything we do. That’s RMO.
Have questions? At RMO, we protect people like you every day.
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