What is the responsibility of the Trustor in relation to losses incurred by trust funds?

The responsibility of the Trustor in relation to losses incurred by trust funds is that losses are exclusively for the account of the Trustor. This means that any downturn or decline in value of the investment within the Unit Investment Trust Fund (UITF) affects the Trustor directly, as they are the ones who have invested their money. The Trustor accepts the risks associated with their investment, which includes the potential for losses.

While the Trustee has the duty to manage the trust assets prudently, they are not liable for the investment losses that occur; the financial responsibility ultimately falls on the Trustor. This understanding is fundamental in UITFs, where the investment risk is borne by the investor rather than the managing entity. The other choices suggest scenarios that do not align with the traditional structure of UITFs where the investor carries the risk of loss.