Which statement is correct regarding a trustor and trustee?

The correct statement regarding a trustor and trustee is that a trustor conveys title to a trustee on behalf of a beneficiary. In a trust arrangement, the trustor is the party that creates the trust and transfers property into it, effectively relinquishing their ownership rights to the trustee. The trustee is responsible for managing the trust assets according to the terms set forth in the trust document, with the primary duty of acting in the best interest of the beneficiary. This relationship establishes the trustee's role as a fiduciary who must adhere to legal obligations, ensuring that the trust property is administered properly and according to the intentions of the trustor.

Understanding the roles within this arrangement is key: the trustor initiates the trust by transferring title, the trustee manages and administers the property, and the beneficiary is the one for whom the trust is created, ultimately benefiting from the trust’s provisions.