What does trustor mean?
A trustor is the person who creates a legal trust. In doing so, the trustor transfers or declares property and other assets to be held and administered by one or more trustees for the benefit of designated beneficiaries. The role should be distinguished from that of a trustee, who manages the trust property, and a beneficiary, who receives a benefit from it. Trustor is used primarily in formal legal English, particularly in trust deeds, wills, and estate-planning documents, although it is recognized in both British and American legal usage. The more familiar synonym “settlor” is now often preferred in modern drafting. Although the term may sound unusual, it identifies a crucial function: the trustor establishes the arrangement and determines its essential terms, including who may exercise powers under the trust and who is to receive its benefits. Understanding this distinction is especially useful when reading trusts, estate plans, and other legal instruments concerning the transfer and long-term administration of assets.
nounA trustor is the person who creates a trust, transferring property or other assets to trustees to administer for specified beneficiaries. In modern legal usage, “settlor” is often used as the more familiar equivalent.
- The person who creates a trust and places property or other assets under the control of trustees for the benefit of specified beneficiaries.
"The trustor appointed two trustees to manage the property on behalf of the beneficiaries."
"The trustor transferred the property to two trustees, who were required to act according to the terms of the trust."
"In the estate plan, the client was named as trustor, while her sister and brother were appointed as trustees."
Used when referring to more than one person who creates a trust.
"The two trustors appointed independent trustees to administer the assets."
The trustor puts the assets in; the trustee manages them; the beneficiaries benefit from them.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does trustor come from?
Trustor was formed in English from the noun “trust” and the agentive suffix “-or,” denoting a person who performs the action expressed by the root. Its legal use developed for the person who creates a trust rather than the person who administers it. Related English forms include “trustee” and “entrust,” while broader words such as “trustful” and “distrust” preserve the same verbal and semantic root.
How trustor is actually used
Trustor is chiefly a formal legal term used in trust deeds, estate planning, and trust law. Many contemporary legal documents use “settlor” instead, especially in jurisdictions where that term is more familiar.
Easily confused with trustor
A trustor creates the trust and transfers assets to it, whereas a trustee administers those assets on behalf of the beneficiaries.