What does settlor mean?
A settlor is the person or legal entity that establishes a trust. In doing so, the settlor transfers or otherwise places specified assets under the control of trustees, with instructions about how they are to be managed and who may benefit from them. The role is especially important in property, estate, tax, and charitable trust law. A settlor need not be an individual; under many legal systems, a company or other organization can act in that capacity. The term is distinct from settler, which describes someone who makes a permanent home in a place, and from trustee, who administers a trust after it has been established. Although settlor may be an informal shorthand for the creator of any trust, its standard use is as a precise legal designation. It appears especially in expressions such as the settlor of a trust, in trust deeds, and in documents concerning the powers and duties of trustees.
nounA settlor is a person, company, or other legal entity that creates a trust by placing property or other assets under the trustees' control for designated beneficiaries.
- A person or legal entity that establishes a trust, usually by transferring assets to trustees for the benefit of beneficiaries.
"The settlor transferred the family home to trustees for the benefit of her grandchildren."
"The trustees must act according to the wishes expressed by the settlor in the trust deed."
"A charitable foundation may serve as the settlor of a trust created to fund educational work."
Used when referring to multiple people or entities that establish trusts, or when distinguishing a settlor from other parties involved in a trust.
"The settlors appointed independent trustees to manage the assets."
A settlor puts assets on the table; the trustees put them to work.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does settlor come from?
Settlor was formed in English from the verb settle with the agent-forming suffix -or, denoting a person who performs the action. The verb traces back through Middle English to Old English setlan, meaning to place, establish, or cause to sit, and ultimately to a Germanic root shared with sit and set. Related English forms include settlement and settling.
How settlor is actually used
This is primarily formal legal terminology, especially in trust and property law. It is most often used in British and American legal contexts and is more specific than the general term donor.
Easily confused with settlor
A settlor legally creates a trust, whereas a settler is someone who establishes a permanent home or community in a particular place.