What is the role of a settlor in a family trust?

What is the role of a settlor in a family trust?

The “settlor” plays an important role in establishing the family trust. He or she for- mally establishes the trust by “settling” the trust with property (i.e., cash or a gold coin has been typically used). Once the settlor has formally created the trust deed, his or her role is generally done.

Who should be the settlor of a family trust?

The settlor is usually someone unrelated to the beneficiaries of the trust, such as an accountant or close family friend. For tax reasons, the settlor should not be a beneficiary of the discretionary trust. The settlor usually has no further involvement with the trust after the initial settlement.

What is a settler in a family trust?

Settlor. 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.

Is a settlor the same as a trustee?

A settlor is a person or company that creates the trust. There can be more than one settlor of a trust. The trustees are the people who manage the trust.

Who is settlor, trustee, and beneficiary?

This is the end at which the trust is created because of performing the trust deed and implementing the resolved sum: 1 Settlor has put the trustee in the custody of trust assets; 2 Settlor has established for the trustee which persons happen to be within the group of beneficiaries, as declared in the… 3 trustee has consented to act. More

Can a trust have more than one settlor?

Yes, the settlor of a trust may also be a trustee. A trust may also have more than one settlor and more than one trustee. This is a common arrangement, for example, when married couples create a trust together.

Who are the trustees in a family trust?

In a family trust, it is common for the settlors’ to also appoint themselves as the trustees as this allows them to retain to control over the trust assets and direct the trust as they wish.

Who is responsible for setting up a trust?

Any trust needs a number of elements before it can start operating: 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.