settlor

USAGE SUMMARY

'settlor' is a correct and usable word in written English.
You can use it when describing someone who makes a settlement, especially in terms of establishing a trust. For example, "The settlor established a trust for their children's education."

✓ Grammatically correct

News & Media

Encyclopedias

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

10 human-written examples

Confusingly, ownership is split: the trustee is the legal owner, while the beneficiaries or the settlor, or both, can at different times exercise beneficial ownership or control who gets the money.

The Economist

Under the amended directive, they would have to register and disclose the identity of the settlor (the person behind the trust), the trustee and beneficiaries.

The Economist

Trustees can be guided by a "letter of wishes", which may allow the settlor to control assets even though legally they do not belong to him.

The Economist

John Christensen of the Tax Justice Network, a pressure group, terms them "one of the biggest nuts yet to be cracked".A trust typically involves three main parties: a settlor (who donates the assets), a trustee (who manages the arrangement) and beneficiaries (who are to receive the funds in future).

The Economist

The maker ("settlor") of the trust will convey property to the trustee (who may be an individual or a corporation, such as a bank or trust company) and instruct the trustee to hold and manage the property for the benefit of one or more beneficiaries of the trust.

Encyclopedia Britannica

By will or by deed of trust, a testator or settlor places property in trust to provide for his family after he is deceased.

Encyclopedia Britannica

Restrictions placed on a trust fund by the settlor (the donor who established the trust) are considered to be voluntary, even if they are involuntary from the beneficiary's perspective.

The New York Times

The following is a typical client scenario from one of the Step training manuals: The proposed settlor [client] is a Brazilian national, but has been living in Canada for the last 15 years where he considers his permanent home to be.

The Guardian - Business

An early draft of the directive included a requirement that the settlor's letter of wishes and the trust deed also be made public, but this was dropped during the horse-trading in committee.That concession has done little to pacify the trust industry.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

2 human-written examples

Pressure groups are calling on the government to publish its new central register of trusts, which names their beneficiaries and settlors.

The Guardian - Business

You would have no idea who the trust settlors were, what the assets were or where they came from.

The Guardian

Expert writing Tips

Best practice

In explanatory materials for clients, consider using "settlor" alongside a more common term like "trust creator" to ensure understanding, especially if the client is unfamiliar with legal jargon.

Common error

Avoid confusing the "settlor" with the "trustee" or beneficiary. The "settlor" creates the trust, the trustee manages it, and the beneficiary benefits from it.

Linguistic Context

The word "settlor" functions primarily as a noun, specifically identifying the person or entity that establishes a trust. As noted by Ludwig, this term is used in legal and financial contexts to denote the creator of a trust.

Expression frequency: Uncommon

Frequent in

News & Media

40%

Encyclopedias

20%

Formal & Business

20%

Less common in

Science

10%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

In summary, the term "settlor" refers to the individual or entity that establishes a trust by transferring assets to a trustee. While grammatically correct and well-defined, as Ludwig AI confirms, it is important to use this term accurately and consistently in legal and financial contexts. Alternative phrases like "trust creator" or "grantor of the trust" may be helpful for clarifying the role of the "settlor" to non-legal audiences. Remember to distinguish the "settlor" from the trustee and the beneficiary. As Ludwig's examples demonstrate, the term commonly appears in news reports, encyclopedias, and business publications, indicating its relevance in discussions about trusts and estate planning.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

trust creator

Replaces "settlor" with a more straightforward term emphasizing the act of creating the trust.

grantor of the trust

Specifies the role of the "settlor" in granting assets to the trust.

trustor

A synonym for "settlor", commonly used in legal contexts.

donor of assets

Focuses on the act of donating assets to the trust by the "settlor".

creator of the settlement

Highlights the act of establishing a settlement, using a more general term.

founder of the trust

Emphasizes the act of founding or establishing the trust.

the person establishing the trust

A descriptive phrase clarifying the role of the "settlor".

individual establishing the trust

Specifies that the "settlor" is an individual.

party creating the trust

Uses the more general term "party" to refer to the "settlor".

estate planner

Highlights the role of the person designing a trust for financial security.

FAQs

What is the role of a "settlor" in a trust?

The "settlor" is the person who creates a trust by transferring property to a "trustee" to hold for the benefit of the beneficiaries. The "settlor" defines the terms of the trust.

What can I say instead of "settlor"?

You can use alternatives like "trust creator", "grantor of the trust", or "donor of assets" depending on the context. These terms might be easier for non-legal audiences to understand.

Is "settlor" the same as "trustor"?

"Settlor" and "trustor" are synonyms. Both terms refer to the person who establishes a trust. "Settlor" is the more common term.

Can the "settlor" also be a beneficiary or trustee of the trust?

Yes, the "settlor" can also be a beneficiary or a "trustee" of the trust. However, it's essential to consider potential conflicts of interest and legal implications when structuring the trust in this way.