What is a founder of a trust?
The founder, also known as the settlor or donor, is an individual or entity that sets up the trust by transferring assets or property to the trust for the benefit of specified individuals or purposes.
Who can be a founder of a trust?
Individuals: Most commonly, an individual can be the settlor of a trust. This individual contributes assets to the trust and defines how those assets should be managed and distributed for the benefit of the trust's beneficiaries.
Couples: In joint family or spousal trusts, a couple may act as co-settlors, jointly creating the trust and contributing assets to it. They work together to establish the terms of the trust for the benefit of themselves and/or their family members.
Entities: In some cases, a legal entity, such as a corporation, partnership, or non-profit organisation, may act as the settlor of a trust. This is more common in business or charitable trusts where the assets are contributed by the entity for specific purposes.