What is the role of the settlor in a trust?

The settlor: The settlor is the person responsible for setting up the trust and naming the beneficiaries, the trustee and, if there is one, the appointor. For tax reasons, the settlor should not be a beneficiary under the trust. It is very important that the trust deed or will is drafted by a solicitor.

What is the difference between settlor and settler?

The words settler, settlor sound the same but have different meanings and spellings. Why do settler, settlor sound the same even though they are completely different words? The answer is simple: settler, settlor are homophones of the English language.

What is the difference between a trustee and a grantor?

A ‘grantor’ is the person who owns a trust fund and all the property under it. While a ‘trustee’ is the person who makes a contractual agreement with the grantor, agreeing to manage the grantor’s property and assets during and after his lifetime. A trustee can be a corporate body as well, such as a trust company .

Does the settlor own the property in a trust?

The settlor may also be the trustee of the trust (where he declares that he holds his own property on trusts) or a third party may be the trustee (where he transfers the property to the trustee on trusts).

Can I change the settlor of a trust?

The sole function of a Settlor is to establish the Trust. Once established and the settled sum has been paid to the Trustee the Settlor has no further involvement with the Trust thus there is no point in changing the named Settlor.

Can a settlor of a trust also be a beneficiary?

The Settlor (creator) of a trust may also be a beneficiary. The typical arrangement is where the Settlor creates a trust and provides that he will be the income beneficiary during his lifetime and upon his death, he can provide that a named beneficiry will receive distribution of th corpus of the trust, or he may provide…