What is a Settlor?
The settlor of a trust is the person who actually creates the trust. In other words, if you created a trust, you would be considered the settlor. Other terms synonymous with settlor include trustor, creator, grantor and trust maker. The settlor not only sets up the trust, but also names the beneficiaries. Other responsibilities include naming the trustees and choosing which property will be transferred to the trust. What is a spendthrift clause in a trust? Many types of trusts include a spendthrift clause. It’s a provision that can prevent trust funds from being paid to anyone other than the trust’s beneficiary. Including a spendthrift clause in a trust can, for example, prevent a greedy brother-in-law from getting his hands on assets that you left for your sister. In many cases, it can also keep the trust’s assets away from creditors. How can I use trusts to make sure my beneficiaries use their inheritance wisely? To insure that an inheritance is used wisely, set up a trust in your wi
What is a REVOCABLE LIVING TRUST? A revocable living trust is an estate planning device that allows you to substantially avoid probate by placing your property in the trust while allowing you to control that property during your lifetime and designate where that property shall go on your demise. You can do anything with your assets in a Trust as you can right now. You can buy or sell stocks, real estate or other assets or make gifts. You can even amend and/or cancel the Trust at your option. Revocable means you can change or cancel the terms or assets of the Trust. Irrevocable means you can not take the assets out of the Trust or change the terms. Back to Top What are the advantages of a REVOCABLE LIVING TRUST? Trust assets pass directly to beneficiaries as soon as all creditors are satisfied. Trusts avoid the expanse and delay of probate. In the event of incapacity, the successor Trustee may take over insuring doctor bills and other bills are paid and provide financial assistance as y
Settlors are persons who choose to settle or grant property to a trust for the benefit of one or more beneficiaries. Generally, the structure of the trust is established as an express trust, meaning that the purpose for the trust is very well defined and specific. A settlor may also be referred to as a donor, trustor, or grantor. A settlor may choose to establish the trust in several different ways. For example, a parent who wished to donate or settle certain financial assets into a trust intended to assist children with college expenses could create an express trust for this purpose. For as long as the trust remained functional, the assets placed in the trust could only be used for college related costs, such as tuition, fees, books, and housing. The settlor would retain the right to reassume control of the assets in the trust once the children had completed college, or chosen to drop out. During the life of the trust, the settlor may or may not also function as the trustee for the tr
As is outlined in more detail in another article on this site, there are two types of trust. Broadly, trusts can be either express or implied; that is, they can either be established as a result of an explicit expression of intent from an individual, or they can be created by implication, for example through a court order. The term ‘settlor’ concerns express trusts. A settlor is the individual who establishes a trust, transferring assets into it. The process of transferring these assets is known as ‘settling’, hence settlor. Sometimes, this individual is known as the trustor or grantor. Ownership of Assets Clearly, the settlor is the most important party in any express trust. It is this individual who initiates the process of constituting the trust; as it is the settlor that owns the property that will be transferred into the trust, it is only the settlor that can choose to do so, unless they are obliged by law. Once the property has been transferred, however, the settlor will no longe
