Why discuss trustors and trustees on the same page?
Most people, when setting up a living trust, name themselves as both the trustor(s) and trustee(s). When people do so, they maintain control of both the language/appointees of the trust and their assets (bank accounts, properties, vehicles, etc.) just as before they created a living trust.What do trustors do?
Also known as grantors or settlors, trustors create the living trust, appoint trustees, successor trustees, beneficiaries, etc., and set distribution instructions. Once the trust is in force, there is little for the trustors to do aside from changing language in the trust or terminating the trust. Trustors are the only ones who can change language.How do trustors make changes?
Amendments are required to change legal language or change appointees. If both co-trustors are living, then both co-trustors must sign any amendments. Whether a surviving co-trustor can amend all or only part of the living trust depends on how it is created. Trustors can add and remove most assets from their living trust without changing any language in the trust. Titled assets, such as property and bank accounts, are added by naming the living trust as the owner.When trustor(s) pass
That is the trigger for distribution of the estate. At this point, the trustees or successor trustees take over and follow the deceased trustors' rules for distribution of the estate.What do trustees do?
Trustees are the daily managers of all assets in the trust. All transactions must be in the best interest of the active beneficiaries (the trustors while they are living). Prior to creating a living trust, you have managed your assets in your best interests. By naming yourself both trustor and trustee of your trust, you are legally stating you'll be managing your assets in your own best interests. Couples usually name themselves co-trustees. Typical daily activities of Trustees include:- Putting money in a bank
- Withdrawing money from a bank
- Purchasing groceries for the Trustor(s)
- Buying / selling real estate, cars, etc.
- Borrowing / lending money
- Purchasing insurance
- Any financial activity you engage in regularly
