SETTLOR - The Creator of a Trust
To schedule an appointment, contact our law firm at 403-400-4092 or Chris@NeufeldLegal.com
A settlor (also known as a grantor, trustor, or donor) is the person (or entity) who creates a trust. The settlor is responsible for initiating the creation of the trust structure (although an estate planning lawyer typically drafts the trust instrument / trust deed) and provides the initial property or assets to fund the trust and bring it into legal existence.
A settlor is said to have legally created a trust by satisfying three essential "certainties," which are usually documented in the trust instrument / trust deed:
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Certainty of Intention: You must clearly express your intention to create a trust. A mere general intention to benefit someone is not enough; you must intend to impose a legally binding obligation on the trustee.
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Certainty of Subject Matter: The property or assets you are placing in the trust (the "trust property") must be clearly identified and distinguishable.
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Certainty of Objects (Beneficiaries): The person or people who will benefit from the trust must be clearly identified, either by name or as an ascertainable class (e.g., "my children").
To legally create the trust, and satisfy the three certainties, the settlor typically looks to undertake the following key actions:
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Creates the Trust: The settlor is the architect of the trust (with the assitance of an estate planning lawyer that drafts the trust instrument / trust deed). The settlor initiates the process and define the terms and conditions under which the trust will operate.
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Funds the Trust: The settlor transfers ownership of assets (money, investments, property, etc.) to the trust. This act of "settling" the property is what brings the trust into existence.
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Appoints the Trustee: The settlor selects the individual or institution (the trustee) who will hold legal title to the assets and manage them according to the trust's terms.
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Names the Beneficiaries: They designate the person or people (the beneficiaries) who will ultimately benefit from the trust assets.
As such, when you are looking to create a trust that legally facilitates your objective goals, contact our law firm today to schedule a confidential consultation at 403-400-4092 or via email at Chris@NeufeldLegal.com.
IMPORTANT NOTE: This website is designed for general informational purposes. The site is not designed to answer specific questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as substitute for individual legal advice. If you want specific legal advice, you need to engage a lawyer under established legal engagement procedures that have been specifically agreed to by that lawyer.
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