Also known as: settlors · grantor · trustor
Written by attorneys — see sources below.
A person who creates a trust by transferring property to a trustee or by declaring a trust over property already owned. The settlor may retain powers such as revocation or modification depending on the trust terms. Multiple contributors to the same trust each qualify as settlor of the portion attributable to their contribution.
Sydney Santos executes a deed conveying land to a trustee for a revocable trust she created. After the trustee accepts the deed at closing, Sydney later claims the trustee breached a repair promise made in the trust agreement. Sydney qualifies as settlor of the trust because she transferred the property during life.
Simone Sanders creates a trust leaving an outright remainder to her disabled grandson. Unanticipated medical costs threaten to disqualify him from public benefits. A court modifies the remainder into a special needs trust to preserve assets and fulfill Simone's intent.
Sean Steele executes a will devising his residuary estate to the trustee of a revocable trust he funded during life. The trust instrument is identified in the will and remains amendable. The devise is valid and the property joins the trust corpus for administration.
Stella Shapiro funds a revocable trust and dies leaving unpaid debts exceeding her probate estate. Her creditors seek satisfaction from trust assets. The trust property is subject to those claims to the extent the probate estate is inadequate.
Selena Singh assigns a security interest in collateral to a lender and the financing statement is filed under her name as assignor. Selena qualifies as settlor when the assigned collateral is later placed in trust because she contributed the property. The filing perfects the interest when the assignor is the record holder.
Sasha Stone executes a deed identifying herself as grantor and a trustee as grantee, with words of conveyance and a property description. She signs and delivers the deed with intent to fund her trust. Sasha qualifies as settlor because she transferred the property to the trustee.
Each contributor is a settlor of the portion of trust property attributable to that person's contribution unless another person holds a power to revoke or withdraw that portion.
Yes. A will may validly devise property to the trustee of a trust established during the testator's lifetime by the testator or by the testator and another person, including a funded or unfunded life insurance trust.
Yes. After the settlor's death the property of a trust that was revocable at death is subject to claims of the settlor's creditors to the extent the probate estate is inadequate.
No. A court may modify administrative or dispositive provisions when circumstances not anticipated by the settlor make modification necessary to further the trust purposes.
…a trust is expressly created, but [its] uses . . . fail from any cause, a resulting trust is implied for the benefit of the grantor, or testator, or his heirs.” Ga. Code Ann. § 108-106 (4) (1959). The Georgia courts concluded, in effect, that Senator Bacon would have rather had the whole trust fail than have…