What does a settlor do when creating a trust?

When creating a trust, the main function of the settlor is to transfer property to a trustee. This action is essential for establishing the trust, as it involves the settlor moving assets into the trust's ownership, thereby allowing the trustee to manage those assets according to the terms set forth in the trust document. This transfer of property is what formally initiates the trust's operation.

The trustee then becomes responsible for managing the trust's assets on behalf of the beneficiaries, following the instructions provided by the settlor. Thus, the act of transferring property is foundational to the trust's existence; without this step, the trust cannot be established effectively.

While a settlor can also appoint beneficiaries and define the terms of property management within the trust document, the fundamental act that creates the trust is the transfer of property to the trustee. Filing a lawsuit for claims is not associated with the initial act of creating a trust; instead, it pertains to legal actions that might arise during the trust's administration or in disputes regarding the trust.