Which participants are involved in a trust?

The correct choice encompasses the key roles involved in a trust arrangement. A trust is typically established when one party, known as the trustor or grantor, transfers property or assets into the trust for the benefit of another party, referred to as the beneficiary. The trustee is an essential participant, as this individual or entity is responsible for managing the trust according to its terms and ensuring that the beneficiaries receive their designated benefits.

Understanding these roles is important in real estate and estate planning, as it clarifies how trusts operate. The trustor creates the trust and outlines the rules for asset management; the trustee administers these assets responsibly, while the beneficiary is the individual or group who stands to benefit from the assets held in the trust. This arrangement effectively separates legal ownership from equitable interest, which is crucial for estate planning and asset protection strategies.

The other combinations do not accurately represent the fundamental roles associated with a trust. For instance, the inclusion of a lender and mortgagor in those alternatives does not align with trust terminology and function.