Estate Planning & Living Trusts
32. Your living trust team (A)
To understand how a trust works, you need to know these four legal terms.
1. The "grantor" (sometimes called settlor, trustor or creator) creates and controls the trust. You are the grantor of your trust. And only you, as the grantor, can make changes to your trust. That's how you keep control.
2. The "trustee" manages the assets you put into your trust. Most people choose to be their own trustees. If you and your spouse are co-trustees, either of you can act and have instant control -- with no court interference -- if one of you becomes incapacitated or dies. You can also select a corporate trustee to act as your trustee or co-trustee. More about them in a minute.