Real Estate Appraisal Practice Exam

In a trust, who is responsible for ensuring the terms of the trust are carried out?

1. The grantor

2. The beneficiary

3. The trustee

4. The notary

The correct answer is: The trustee

In a trust, the trustee holds the responsibility for ensuring that the terms of the trust are executed as intended. The trustee is the individual or entity appointed by the grantor to manage the trust assets and carry out the provisions outlined in the trust document. This role involves making decisions in the best interests of the beneficiaries, distributing assets as specified, and maintaining accurate records of trust transactions. The trustee must adhere to fiduciary duties, which require them to act with loyalty and care in managing the trust. Their responsibilities are crucial in upholding the intentions of the grantor and in safeguarding the rights of the beneficiaries. The grantor establishes the trust and sets its terms but does not manage it. The beneficiary receives benefits from the trust but does not have the authority to enforce its provisions. The notary may validate the trust documents but does not have any ongoing responsibilities regarding the trust's management. Thus, the trustee is clearly the key figure responsible for the implementation and oversight of the trust's terms.