A settlor is the person who actually creates the trust by transferring property to a trustee to be held and administered for the benefit of the beneficiary. The settlor generally arranges to have the terms of the trust drawn up according to their wishes.

Can the settlor be the beneficiary?

The settlor may also be a trustee (but not the sole trustee) and they may also be a beneficiary. In some cases the appointment of a beneficiary as trustee gives them a direct interest and involvement in the trust’s affairs, especially if the trust is set up for the benefit of their family.

What is the difference between a settlor and a protector?

In trust law, a protector is a person appointed under the trust instrument to direct or restrain the trustees in relation to their administration of the trust. the settlor wishes a third party to act as a main point of contact, between the beneficiaries and the trustees.

What happens if settlor dies?

The death of the settlor will mean that the settlor’s rights terminate and the trust fund is available to the other beneficiaries. Remember that the settlor’s rights under a DGT have no value in the event of his death. The only IHT implications will be if the death occurs within 7 years of the original gift.

What is the role of a settlor in a trust?

Updated Apr 26, 2018. A settlor is the entity that establishes a trust. The settlor goes by several other names: donor, grantor, trustor, and trustmaker. Regardless of what this entity is called, its role is to legally transfer control of an asset to a trustee, who manages it for one or more beneficiaries.

What is the legal definition of a settlor?

Settlor Defined Legally. By Julia Kagan. Updated Jun 8, 2020. A settlor is the entity that establishes a trust. The settlor goes by several other names: donor, grantor, trustor, and trustmaker.

What happens in the case of a professional settlor?

It is important to remember that professional trustees will charge fees for acting. In this case the settlor will normally also be the life assured and so their death will result in a claim under the policy and the payment of the death benefit to the trustees.

What happens in the event of the settlor’s death?

Remember that the settlor’s rights under a DGT have no value in the event of his death. The only IHT implications will be if the death occurs within 7 years of the original gift. The trustees need to ensure that the life office is informed immediately so that any payments made directly to the settlor’s bank account stop.