For the purpose of preneed funeral trust law, what does the term 'Trustor' mean?

Prepare for the California Law Funeral Arranger Exam. Engage with flashcards and multiple-choice questions, each with hints and explanations. Confidently embrace your exam!

Multiple Choice

For the purpose of preneed funeral trust law, what does the term 'Trustor' mean?

Explanation:
In preneed funeral trust law, the trustor is the person who funds the trust by paying for the preneed arrangements. They are the purchaser who sets up the trust and contributes the assets that will be used to cover the funeral expenses when needed. This role is distinct from who benefits (the person for whom the funeral will be provided) and from who administers or invests the trust (the trustee). The funeral establishment may establish or manage the trust in some cases, but the trustor’s defining role is funding the trust.

In preneed funeral trust law, the trustor is the person who funds the trust by paying for the preneed arrangements. They are the purchaser who sets up the trust and contributes the assets that will be used to cover the funeral expenses when needed. This role is distinct from who benefits (the person for whom the funeral will be provided) and from who administers or invests the trust (the trustee). The funeral establishment may establish or manage the trust in some cases, but the trustor’s defining role is funding the trust.

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