Parties in a Trust

Parties in a Trust
The parties in a trust consist of:

  1. The settlor.
  2. The trustee.
  3. The beneficiaries.
  4. The protector.

1. The Settlor

The settlor is the person who sets up the trust. This is either a person who has the assets that are being gifted to the trust or it could be a professional adviser or a family friend. The settlor is the person who sets up the trust and then has no other important powers or involvement. The settlor needs to be an adult (20 years or over) and must be of sound mind. The settlor may be a company or another trust.

In some trusts the settlor is given important power so it is difficult to generalise about trusts or the functions in them. The settlor (sometimes called the grantor) is the individual who legally creates the trust by putting together a trust deed and by starting the trust up, with its initial assets.

In the event that mirror trusts are established, the owner of the assets is usually the settlor of his/her own trust.

2. The Trustees

The trustees are the referees involved in t...

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