Q&A

Question: What is the settlement of a trust?

The trust deed must be signed by the settlor, who must give the initial settlement sum (usually $10) to the trustee.

The settlor is usually someone unrelated to the beneficiaries of the trust, such as an accountant, lawyer or close family friend. For tax reasons, the settlor should not be a beneficiary of the discretionary trust. The settlor usually has no further involvement with the trust after the initial settlement.