Who is referred to as a settlor in trust law?

In trust law, the term "settlor" specifically refers to the person who creates a trust for the benefit of others, typically known as the beneficiaries. The settlor is crucial in the establishment of a trust, as they define the terms and conditions under which the trust operates and determines how the trust assets are to be managed and distributed.

This role involves transferring property or assets into the trust, thereby relinquishing ownership while controlling the trust's terms. Essentially, the settlor establishes the framework that governs the trust's operation, including appointing a trustee to manage the assets in accordance with the settlor’s wishes.

In contrast, individuals managing trust assets, known as trustees, have a different role; they have a fiduciary responsibility to act in the best interests of the beneficiaries, as outlined by the settlor's instructions. Beneficiaries are those who receive benefits from the trust, and they do not have a role in its creation. Lastly, an official overseeing a fiduciary relationship typically refers to a legal or regulatory figure and is not involved in the creation of the trust itself.