What is the role of a Settlor in the context of a trust?

The role of the Settlor in the context of a trust is fundamentally about establishment. The Settlor is the person who creates the trust by transferring assets into it and defining the terms under which the trust will operate. This includes determining how the assets are managed and who will benefit from them. The actions of the Settlor set the framework for the trust’s operation and define the fiduciary duties of the trustee, as well as the rights of the beneficiaries.

By establishing the trust, the Settlor enables the management and distribution of assets according to their wishes, ensuring that the trust functions for its intended purpose. This clarity in purpose and definition is essential for effective asset management and beneficiary protection. The other roles mentioned pertain to different responsibilities that may be held by other individuals involved with the trust, such as trustees who manage the funds, or auditors who oversee trust activities, but it is the Settlor's role that initiates the trust.