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NSW Who is the True Settlor of the Trust Fund?

Discussion in 'Wills and Estate Planning Law Forum' started by Steve500, 9 July 2015.

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  1. Steve500

    Steve500 Well-Known Member

    10 March 2015
    Likes Received:
    Say you want to claim the capital or remove the Trustee on a Trust fund, 1st though you want to establish the "True-settlor". Say the person A transferred money into Person's B's bank account to set up a family trust for "Person B's" relative. Would the settlor be person A or B?

    This becomes especially relevant if person A is now deceased, and you want person B to be removed as a Trustee and if you think they are trying to sell the property and you are the sole-beneficiary.

    So yep, I just wanted to know in a situation like that, who would the True settlor B, as Person A put up the cash and gave it to Person B, for the purposes of setting up a trust fund, but Person B did all the paperwork and transferred the money into the trust account that Person A, gave them.

    I suppose my question has a lot to do with the sole-beneficiary trying to claim the capital of the family / discretionary trust fund and wanting Person B removed as a Trustee.
  2. Sophea

    Sophea Well-Known Member

    16 April 2014
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    The settlor is the person who gifts the money, so based on your scenario it would be person A. The settlor typically signs the trust deed and provides the capital to start the trust. Usually the settlor is not a family member because they cannot benefit under the trust, often an accountant or financial planner is made the settlor of a trust.

    The appointor is the person who appoints or removes trustees and controls the trust. The appointor has the power to remove and appoint a new trustee whenever they desire. The same person can be appointed as trustee and appointor.

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