What is the role of the Settlor?

There are several requirements before a trust can operate, the first being the requirement for a Settlor. The Settlor is the person or entity that is responsible for setting up the trust including the process of handing over the settled sum to the Trustee on the terms stipulated within the deed for the benefit of the beneficiaries. The Settlors involvement in the trust is limited to the initial establishment and the payment of the settled sum.

In most circumstances, the Settlor is the accountant or lawyer creating the trust as they are usually well informed and can advise on the complex tax issues arising from the creation of a trust. If a financial professional is not available to fulfill this role, then anyone can elect themselves to do so provided they are not beneficially entitled under the Trust.

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