What term denotes a trust in which the grantor appoints the trustee?

What term denotes a trust in which the grantor appoints the trustee?

• A. Trust Agreement
• B. Successor Trustee
• C. Substitute Trustee
• D. Express Trust

Answer: (A)

When a grantor sets up a trust by naming who will manage it, the document that creates and governs that arrangement is the trust agreement. This instrument records the grantor’s appointment of the trustee, lays out the trustee’s powers and duties, and spells out the terms for administering and distributing trust assets. In other words, the trust agreement is the vehicle that embodies the grantor’s appointment of the trustee and the specifics of the trust. A successor trustee refers to who will take over after the initial trustee, not the instrument that creates the trust. A substitute trustee is a term more often used in real estate and foreclosure contexts, not in defining the trust itself. An express trust describes the type of trust created by explicit declaration, but it doesn’t specifically denote the document that appoints the trustee.

When a grantor sets up a trust by naming who will manage it, the document that creates and governs that arrangement is the trust agreement. This instrument records the grantor’s appointment of the trustee, lays out the trustee’s powers and duties, and spells out the terms for administering and distributing trust assets. In other words, the trust agreement is the vehicle that embodies the grantor’s appointment of the trustee and the specifics of the trust.

A successor trustee refers to who will take over after the initial trustee, not the instrument that creates the trust. A substitute trustee is a term more often used in real estate and foreclosure contexts, not in defining the trust itself. An express trust describes the type of trust created by explicit declaration, but it doesn’t specifically denote the document that appoints the trustee.