What is a settlor of a trust?

A settlor, also known as a trustor or grantor, is the individual who creates a trust by transferring assets to a trustee for the benefit of the trust's beneficiaries. The settlor establishes the trust by outlining the terms and conditions of the trust in a legal document known as the trust deed or trust instrument.

The settlor decides what assets to include in the trust, specifies how the assets should be managed and distributed, and designates the beneficiaries who will receive the trust assets. The settlor may also appoint a trustee to oversee the trust and ensure that the terms of the trust are carried out according to the settlor's wishes.

In most cases, a settlor retains some level of control over the trust and can make changes or amendments to the trust terms during their lifetime. However, once the trust is established, the settlor generally cannot reclaim the assets placed in the trust.

It is important for the settlor to carefully consider their goals and objectives when creating a trust, as the terms of the trust will dictate how the assets are managed and distributed both during the settlor's lifetime and after their passing. Additionally, the settlor should consult with legal and financial advisors to ensure that the trust is set up in a way that aligns with their intentions and will effectively meet the needs of the beneficiaries.