Who is the settlor of a trust
The settlor of a trust is the individual or group of individuals responsible for the original formation of the entity. The settlor is the person who has made the decision to establish the entity, and is responsible for deciding how it will be formed and who will benefit from its formation.
We offer a range of trust formation services in a variety of jurisdictions. To begin the asset protection procedure with DeltaQuest, please complete our Application Form.
Features of the settlor
A trust is a legal entity that is established by many individuals and companies from across the globe. It involves the transfer of ownership of assets from the original owner to the trust.
There are many reasons why people choose to set up a trust; whether for personal, business or charitable reasons, the set up of this structure is an important personal and financial procedure that must be carefully planned and considered. It can be established for inheritance protection for the future benefit of the settlor’s children, or for the benefit of the settlor upon his or her retirement.
When an individual chooses to set up a trust, that person is legally referred to as the settlor. The settlor plays a crucial role in the creation of the trust as without a settlor, the trust would not come into existence.
It is the responsibility of the settlor to establish the specific variety of trust that is set up, as well as the full objectives of the trust. When setting up a trust, a deed is drawn up and the specifications of the settlor will be detailed within the deed. This ascertains the exact intentions of the entity, determines who the beneficiaries will be and specifies the type of property that will be held in the structure.
In some legal systems, the settlor can also be referred to as a trustor, grantor or donor, depending on the type of trust set up and the jurisdiction selected. In some jurisdictions, it is also possible for the settlor to simultaneously play the role of trustee.
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