entrustors

An entrustor is a person who creates a trust by placing assets under the control of a trustee to manage for the benefit of specified beneficiaries. The term is sometimes used interchangeably with settlor, trustor, grantor, or donor, depending on jurisdiction and the form of the trust. The entrustor's primary act is the execution of a trust instrument and, in many cases, funding the trust by transferring property into it or declaring property as trust property.

The entrustor sets the rules that govern the trust, including the powers and duties of the trustee, distribution provisions, and the duration of the trust. In revocable trusts, the entrustor may retain significant control and the assets remain accessible; in irrevocable trusts, the entrustor generally relinquishes ownership, with consequences for taxes and asset protection. The trustee holds legal title to the trust assets and administers them in accordance with the instrument and fiduciary duties.

The entrustor is distinct from the trustee and the beneficiaries, though in some arrangements the entrustor may also serve as trustee. The appointment of trustees, successor trustees, and the ability to amend or revoke the trust (when allowed) are typically specified by the entrustor at creation and may be limited by law.

Terminology varies by jurisdiction; some laws use "entrustor" primarily in common-law contexts, while others prefer "settlor" or "grantor." Regardless of the label, the entrustor's role is to establish the trust's purpose and terms and to initiate the transfer of assets into trust ownership.