Malcolm Finney looks at who potentially falls within the definition of ‘settlor’.
The three key parties involved in the trust concept are the trustees, the beneficiaries and the settlor(s). This article examines the settlor concept for tax purposes.
It is worth noting that even if a person is named as a settlor in a trust document, it does not follow that such person is a settlor for tax (or indeed non-tax) purposes.
No single definition of ‘settlor’
Unfortunately, there is no single definition of the term ‘settlor’ for all tax purposes. For income tax and capital gains tax purposes, the settlor is any person who has made a settlement which in turn is any person who has provided property for the purposes of the settlement (ITA 2007, s 467). The provision of property includes any settlement which arises on a person’s death
