Once a trust is created, the settlor is no longer the legal owner of those assets; instead, the trust becomes a separate legal entity that holds and manages them for the benefit of designated Beneficiaries.
A trust is created as part of a person's Estate Planning strategy to ensure their assets are properly managed and Distributed after their death. It helps ensure that a settlor's wishes are carried out and provides clarity to avoid potential disputes.
After the death of a settlor, provisions outlined in the trust documents are activated; they not only govern how assets will be distributed, but many of its specific terms, like, for example, the timing of distributions, or other conditions or restrictions on the use of the trust's funds.
A settlor typically designates a Trustee to manage the trust and carry out its instructions after their death. The trustee is responsible for "administering" the trust and actioning its directives.