CA Foundation Business Law Practice Exam

Question: 1 / 805

Which term is used to describe the individual who creates a trust?

Trustee

Settlor

The term that describes the individual who creates a trust is "settlor." The settlor is responsible for establishing the trust agreement, outlining its terms, and determining how the assets within the trust will be managed and distributed. This person plays a crucial role in initiating the trust, as they decide the purpose of the trust and the beneficiaries who will benefit from it.

The other terms listed have distinct meanings in the context of trusts. The trustee is the individual or entity appointed to manage the trust properties and carry out the terms set forth by the settlor. The beneficiary is the person or group who is intended to receive benefits from the trust, such as income or property. An agent typically refers to someone authorized to act on behalf of another person, often in a different context unrelated to trust creation.

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Beneficiary

Agent

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