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to get a basic concept between the difference of these two, there are basically three basic individuals involved in a trust. The trustor, the Trustee, and the beneficiary. The easiest way to understand this is by illustration.
Trustor-------------------->Trustee----------------------->Beneficiary
gives $ or property manages $ or property receives $ or use of property
As an example, Anne (trustor or donor) wants to give $100,000 to her daughter Marie (the beneficiary), but does not want her to have access all of the money at once. Therefore, she gives the money to Hillary (the trustee) and tells her to only pay her daughter Marie 10,000 per year, over the next ten years.
Now there would of course be other variables within this example such as management fees the trustor would charge, as well as accrued interest since the money would be held in a trust fund, but I'm trying to give a simple answer to a simple question.
A Trustor is the person who creates the trust and transfers the property into the trust. A Trustee is the person or entity responsible for managing the trust and its assets according to the terms of the trust document for the benefit of the trust's beneficiaries.
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What is the difference between a trustee and an agent on a trust?
A trustee is a person or entity appointed to manage and administer a trust on behalf of the beneficiaries, while an agent is someone authorized to act on behalf of a trustee in specific circumstances. Trustees have a fiduciary duty to act in the best interests of the beneficiaries, while agents act on behalf of the trustee and must follow the trustee's instructions.
Explain in detail the difference between trust and bailment?
Trust involves giving control or ownership of property to another person (the trustee) who is expected to manage it for the benefit of another (the beneficiary), while bailment involves giving possession of property to another person (the bailee) for a specific purpose, with the expectation that the property will be returned in the same condition. Trusts are typically long-term arrangements with legal implications, while bailments are usually for a specific, temporary purpose. Trusts involve a fiduciary duty, while bailments involve a duty of care.
Can living trust be created for a minor and can they be the trustee?
Yes, a living trust can be created for a minor, with a responsible adult appointed as the trustee to manage the assets on behalf of the minor until they reach a certain age specified in the trust. The minor cannot act as the trustee due to their legal status as a minor.
What is difference between immovable and movable property?
Immovable property refers to land and things permanently attached to the land, such as buildings. Movable property, on the other hand, includes items that can be easily moved or transferred from one place to another, like furniture or vehicles.
Is there a difference between a trust and a will?
Yes, there is a difference between a trust and a will. A trust is a legal arrangement where a trustee holds assets on behalf of beneficiaries, while a will is a document that outlines how a person's assets should be distributed after their death. Trusts can be used to manage assets both during someone's lifetime and after their death, providing more control and privacy compared to a will.
What is the difference between the trustee and the fiduciary of a trust?
fiduciary and trustee
What is the difference between opening a trust account for a minor and a custodial account?
A tust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. A trust can be setup for a trustee of any age, and that age can be specified by the trustor. A custodial account is managed by an adult for a client who is considered a minor age 18-21 years old. Once the client reaches the legal age of their state of residence the account is taken over by the named account holder.
What is the difference between the trustee and the royal colony?
royal-run by governor trustee-run by trustee
Do you get to keep to keep your property if you file bankruptcy?
You get to keep any property that you can exempt, which may depend on state laws. Some states let you choose between the federal exemptions or the state exemptions. Any property worth more than the exemption has to be redeemed (the trustee is paid the difference between the value of the property and the exemption) or given to the trustee. (Technically, the trustee owns everything in a chapter 7 until the 341 meeting or the first meeting of creditors.)
What should i do about a living trust that both the original trustee and the alternate trustee have declined to manage due to hostility between siblings?
A successor trustee must be appointed and the present trustees must be removed. There should be provisions in the trust document that direct how trustees will be appointed and removed. Hopefully, the trustor can appoint a new trustee who is a non-interested party.
What is the difference between property of the debtor and property of the debtors' estate?
In a chapter 7, the debtor's estate consists of all property owned by the debtor which has not been exempted or is subject to a lien and has little or no equity. The trustee takes and sells the non-exempt assets that are not subject to a lien. If the debtor cannot pay the trustee the value of equity, the trustee may force the sale of the encumbered asset or the debtor will have to convert to a chapter 13.
What is the difference between and IRA trustee and an IRA Custodian?
Custodian has passive control vs. a trustee who can invest, funds etc.
What is the difference between a trustee colony and a royal colony?
A Royal Colony is when they are under the king control. A Trustee Colony is when they are just workers for the king.
What is the difference between a trustee and a custodian?
A custodian is always a person; one who has charge of something (a caretaker) of a minor child's estate or an absentee landlord's property. The custodian does not hold title to the property. A trustee is often an institution such as a bank, that holds legal title to a property in order to administer it for a beneficiary, or can be a member of a board elected or appointed to direct the funds and policy of an institution. [source: this information reprinted from Answers.Com]
What is the difference between renting a property and having a mortgage?
The difference between renting a property and having a mortgage is that when you have a mortgage you are buying the property.
If one sibling filed chapter 7 and there is property that is left by your deceased parents but no succession has been filed by your siblings can a trustee sell the property to pay creditors?
Only that property that is determined to be owned by the sibling. If property is owned jointly between the sibling and the remaining family, the remaining family may be forced to get a loan to pay the appraised value of the siblings share. As this Q is frequently referred to by those asking about a trustee that is a sibling.....a trustee is NOT the owner of any of the proerty he is trustee for...in fact, IT CANNOT be used for his personal needs.
What is the difference between a notice of trustees sale and a tax lien sale?
A tax sale in initiated by your county tax office for deliquent property taxes. The trustee sale is from your mortgage company for deliquent mortgage payments. Neither can be initiated w/o proper notice to the property owner.
