The person who creates a trust by transferring property to a trustee to hold for the benefit of beneficiaries. Also called grantor (US term) or trustor. The settlor establishes the trust's terms, determines beneficiaries, and specifies how the trust property should be managed and distributed.
The settlor is the person who sets up a trust. If you create a trust and put your money or property into it, you're the settlor. You decide who the beneficiaries are, who manages it (the trustee), and what rules they must follow.
⏱ When you'll encounter this term
- Creating a family trust or estate planning trust
- Reading trust documents and seeing your role defined
- Tax documents identifying who created the trust
- Legal disputes about trust interpretation
"Grandad was the settlor of the family trust—he created it in 1985, transferred the family business into it, and set the terms for how it should operate. Even though he's no longer the trustee, he's always referred to as the settlor because he's the one who established it."
⚖️ Compare: Settlor vs Trustee
Creates the trust and sets its terms. Transfers property into trust. Role is usually at creation only.
Manages the trust ongoing. Makes investment and distribution decisions. Active role throughout trust's existence.
💡 Did you know?
The same person can be settlor, trustee, and beneficiary of a trust all at once—this is common with revocable living trusts where you create it, manage it yourself, and benefit from it during your lifetime.