Which term is the document establishing the terms of a revocable trust when the grantor acts as trustee?

Which term is the document establishing the terms of a revocable trust when the grantor acts as trustee?

• A. Inter vivos or living trust
• B. Declaration of trust
• C. Revocable trust
• D. Fiduciary duty

Answer: (B)

The document used when the grantor acts as trustee is a declaration of trust. This instrument is the declaration by which the grantor states that they hold certain assets in trust for defined beneficiaries and sets forth the terms of how the trust will be managed, how distributions are made, and how the trust can be altered or revoked. It’s the form most appropriate when the grantor serves as both settlor and trustee because it explicitly communicates that the same person is creating and administering the trust. Inter vivos or living trust describes when the trust is created, not the specific instrument used. A revocable trust describes the trust’s ability to be changed or canceled, but again doesn’t specify the document’s name. Fiduciary duty refers to the duties the trustee owes to the beneficiaries, not to the document that creates the trust.

The document used when the grantor acts as trustee is a declaration of trust. This instrument is the declaration by which the grantor states that they hold certain assets in trust for defined beneficiaries and sets forth the terms of how the trust will be managed, how distributions are made, and how the trust can be altered or revoked. It’s the form most appropriate when the grantor serves as both settlor and trustee because it explicitly communicates that the same person is creating and administering the trust.

Inter vivos or living trust describes when the trust is created, not the specific instrument used. A revocable trust describes the trust’s ability to be changed or canceled, but again doesn’t specify the document’s name. Fiduciary duty refers to the duties the trustee owes to the beneficiaries, not to the document that creates the trust.