In a typical case, the creator of the trust -- called the settlor or trustor -- names himself or herself as the initial trustee and the initial beneficiary.  Thus, the settlor holds legal title to trust property as trustee for his or her own use and benefit as beneficiary.  When the settlor dies, becomes incapacitated or resigns as trustee, another person becomes trustee and manages the property for the benefit of the settlor, if living, or for the beneficiaries named by the settlor, if the settlor is dead.  For example, the trust may provide that, upon the settlor's death, the settlor's daughter becomes trustee and is instructed to distribute the trust property in equal shares to the settlor's three children.

Last updated on January 6, 2011 by Glenn Karisch