Who is the Grantor/Settlor in a trust?

• A. The creator of the trust
• B. The beneficiary
• C. The trustee
• D. The custodian

Answer: (D)

The Grantor/Settlor is the creator of the trust—the person who establishes the trust agreement, funds it, and sets its terms. This is the individual who decides the assets to place into the trust and who names the trustee to manage those assets for the benefit of the beneficiaries. The trustee, not the grantor, handles the day-to-day administration and distribution of trust assets. The beneficiary is the recipient of the trust’s benefits. A custodian may hold assets in some arrangements, but in a typical trust structure the grantor is the creator, while the trustee manages the trust assets.