In trust terminology, what term may also be used for the grantor depending on the state?

• A. Settlor or trustor
• B. Beneficiary
• C. Trustee
• D. Grantor

Answer: (A)

The person who creates and funds the trust can be called by different names in different states. In many jurisdictions, that creator is known as the settlor or the trustor. These terms are used interchangeably with grantor in some contexts, especially in state laws or non-tax trust documents. The key idea is that the settlor/trustor is the originator of the trust, separate from the trustee who carries out the trust’s administration and the beneficiaries who enjoy the benefits. Because terminology varies by state, recognizing settlor or trustor as alternative labels helps you correctly identify who created the trust in various documents.