settlor

A settlor is the person or entity that creates a trust by declaring that property or rights are to be held by a trustee for the benefit of one or more beneficiaries or for a stated purpose. The settlor transfers property to the trustees in an inter vivos trust, or declares a trust over assets in a will. The trustees administer the trust in accordance with the terms laid out by the settlor, and the beneficiaries or the intended purpose enjoy the trust benefits subject to those terms.

Creation and essential elements: In many jurisdictions an express trust requires intention to create a trust, certainty of the subject matter and the objects (the beneficiaries or purposes), and a transfer or declaration of trust property to the trustees. For real property, some form of conveyance or deed is typically required. The settlor may also appoint or remove trustees, set powers, and specify the terms that govern administration and discretion.

Variants and limitations: Trusts may be revocable or irrevocable depending on the instrument and law. A settlor-interested trust involves the settlor or their relatives benefiting from the trust, which can raise conflicts for fiduciary duties or tax treatment. In many jurisdictions, testamentary trusts created by a will become effective on death; inter vivos trusts operate while the settlor is alive. Some jurisdictions also regulate charitable trusts differently.

Relationship and role: The settlor is distinct from the trustees and beneficiaries. The settlor's declaration or transfer defines the trust's scope and terms, while trustees hold and manage the trust property in accordance with fiduciary duties and the governing document, subject to judicial oversight to ensure compliance with law and trust terms.