A person who has been named as Settlor in a discretionary trust only has one duty to undertake, he/she makes a gift of the “settled sum”, usually a nominal amount paid by cheque, once the Deed has been signed by both the Trustee to the trust & the Settlor.
The role of Settlor can be carried out by anyone really, with a few exceptions. If the potential Settlor can be identified as a possible beneficiary under the trust, an alternate person should appoint. The Settlor must also be over the age of eighteen. In a lot of discretionary trust set-ups, your accountant, solicitor or a family friend (unrelated) nominates to be Settlor.
Once the Settlor & trustee’s signatures are on the deed, with, ideally, the “settled sum” deposited into a separate account from any other the Trustee may have opened, the Settlor’s responsibilities come to an end.
Related Tag: Discretionary Trust Set Up | Allan’s off the Shelf