Why Does a Trust Need a Settlor?

The settlor of a trust is the person who creates the trust. To do so, the settlor does two things. First, the settlor establishes the legal document that contains the trust's terms. Second, the settlor then transfers property into the trust, which is also known as funding the trust.

Is a settlor always a trustee?

In law a settlor is a person who settles property on trust law for the benefit of beneficiaries. ... 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).

What's the difference between settlor and 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.