The settlor is the individual who creates the trust, they are also known as the trustor, grantor, or trust-maker. The settlor places their assets in the trust, transferring the legal ownership of the assets to the trustee who in turn manages the assets for the benefit of the beneficiaries.
The settlor appoints one or more trustees who are then accountable to manage the trust accordingly to the settlor´s wishes and objectives defined in the Trust Deed. The duties of the trustee include but are not limited to following the terms of the Trust of Deed, defending the trust against any judgments or lawsuits, managing and investing the trust´s assets, and acting in the best interest of the beneficiaries.
The protector of the trust is appointed to oversee the trust´s operations and to monitor, advise and ensure the trustee is acting accordingly to the Trust Deed. Protectors often have the power and flexibility, if detailed in the Trust Deed, to appoint and dismiss trustees and make decision on their behalf and in the best interest of the beneficiaries.
The Trust Deed will define the objectives of the trust and outline the roles and duties of the trustee and protector and as well the terms and conditions for the distribution of trust assets for the beneficiaries.
The beneficiaries are the individuals who are benefiting from the trust and are often subject to any terms set out by the settlor.