A person who creates a trust, such as a living trust, to become operative during his lifetime.

A person who creates a trust, such as a living trust, to become operative during his lifetime.

• A. Implied
• B. Simple
• C. Settlor
• D. Holographic

Answer: (C)

The key idea is who creates a trust. The person who creates a trust, especially a living trust that takes effect during the creator’s lifetime, is called the settlor. The settlor establishes the trust terms, decides who benefits, and transfers assets into the trust, often acting as or naming a trustee to manage those assets for the beneficiaries. In a living (revocable) trust, this setup happens while the settlor is still alive, which is why it’s described as operative during the settlor’s lifetime. By contrast, terms like implied trusts refer to trusts created by law based on conduct, simple is a tax-related trust category, and holographic relates to handwritten wills—not to the creator of a trust.

The key idea is who creates a trust. The person who creates a trust, especially a living trust that takes effect during the creator’s lifetime, is called the settlor. The settlor establishes the trust terms, decides who benefits, and transfers assets into the trust, often acting as or naming a trustee to manage those assets for the beneficiaries. In a living (revocable) trust, this setup happens while the settlor is still alive, which is why it’s described as operative during the settlor’s lifetime. By contrast, terms like implied trusts refer to trusts created by law based on conduct, simple is a tax-related trust category, and holographic relates to handwritten wills—not to the creator of a trust.