What is the relationship between a trustor and a trustee?

The correct option highlights the essential role of the trustor and the trustee within the context of a trust arrangement. The trustor, often referred to as the grantor or creator of the trust, is the individual who establishes the trust and specifies its terms. By assigning a trustee to manage the trust, the trustor entrusts the responsibility of overseeing the assets and carrying out the terms of the trust. The trustee acts in a fiduciary capacity, meaning they have a legal and ethical obligation to act in the best interests of the beneficiaries of the trust.

In this role, the trustee is responsible for managing the assets according to the stipulations laid out by the trustor, ensuring that the intentions set forth when the trust was created are followed. This relationship is foundational to the functioning of a trust, as it establishes the framework for management and distribution of assets in a structured manner.

The other choices do not accurately depict the relationship between the trustor and the trustee. For instance, the trustee is not the original creator of the trust; that role belongs to the trustor. Moreover, the trustee does not typically benefit financially from the trust in a personal sense; instead, they are compensated for their services based on the terms set forth by the trust.