Who is the Settlor?
The Trust and Trustees Act (Chapter 331 of the Laws of Malta) defines the ‘settlor’ as the person who makes the trust and includes a person who provides trust property or makes a disposition on trust or to a trust.
Therefore, the settlor is the creator of the trust, by settling property on trust to a trustee. Once a settlor has settled property on trust, he shall have no rights in relation to that property except as provided for in the Trust and Trustees Act.
Duties and Functions of the Settlor
The Power to Revoke the Trust
It is possible for the trust deed to provide for a revocable trust, in which case the Trustee has to right to revoke the trust in whole or in part. In such case, the trustee is to hold the trust property in trust for the settlor absolutely subject to the terms of the trust.
The Power to Settle Additional Property on Trust
It is possible for the trust deed to be drafted in such a way as to allow the settlement of any additional property under the same terms of the trust, subject to the acceptance of the trustee.
The Settlor’s Influence over Appointment of Beneficiaries
The settlor has the power to identify which persons or classes of persons may be appointed as beneficiaries of the trust. In fact, a trustee’s power to add a beneficiary shall only be valid if such person or class of persons is identifiable, with such identification being given by written instrument signed by the settlor.
The Trust and Trustees Act also allows a settlor to be a beneficiary of the trust.
Power to Appoint or Remove Trustees, Protectors, Beneficiaries or Investment Advisers
Article 14A of the Trust and Trustees Act allows the settlor to reserve the powers to appoint, add or remove any trustees, protectors or beneficiaries, or to appoint an investment adviser or investment manager, without affecting the validity of the trust or delaying the trust taking effect.
Power to Request Information Relating to the Trust
Article 29 provides that a trustee shall, so far as is reasonable and within a reasonable time of receiving a request in writing to that effect, provide full and accurate information as to
the state and amount of the trust property, including the accounts of the trust and the conduct of the trust administration to the settlor, subject to the terms of the trust.
Multiple Settlors
It is possible for there to be a number of settlors of the same trust. However, in such case, the power to revoke the trust is subject to the express consent of all the settlors
For more information do not hesitate to contact us on info@premier-fiduciary.com.mt
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