What term describes the person who creates a trust?

The term that describes the person who creates a trust is known as the donor, which can also be referred to as the grantor or settlor in some contexts. The donor is the individual who establishes the trust and contributes the assets to it, thereby outlining the terms under which those assets will be managed and distributed.

The role of the donor is crucial because they determine the specifics of the trust, including its purpose, the beneficiaries who will receive assets or benefits from the trust, and the trustee who will manage the trust according to the established guidelines. This creates a legal framework for the management and distribution of assets, which can be used for various purposes including estate planning, asset protection, and charitable giving.

Understanding the roles and responsibilities of the different parties involved in a trust is important in the context of estate planning and financial systems. This clarity helps ensure that the intentions of the donor are respected and executed correctly within the trust structure.