The Guernsey Foundation can be used as an alternative to the PTC and purpose trust arrangements that have traditionally been used to allow Settlors
to retain control over assets and wealth.
Holding assets in trust will also protect them if the settlor
was declared bankrupt.
2013), stating that "[w]ithout evidence that the settlor
intended for the law governing administration of the trust at its inception to always govern the trust, a settlor
's initial choice of law is not absolute and unchangeable" (slip op.
7) Scott on Trusts states, "[t]he extent of the powers conferred on a trustee does not depend only on the language used by the settlor
in creating the trust but may depend also on the purposes for which the trust is created.
the residual beneficiaries (the settlor
in case of a trust, shareholders
With a Discretionary Trust, the settlor
makes a gift into trust which the trustees hold for a wide class of potential beneficiaries.
T]he term "trust" refers to the legal relationships created--inter vivos or on death--by a person, the settlor
, when assets have been placed under the control of a trustee for the benefit of a beneficiary or for a specified purpose.
13) A spousal lifetime access trust is an irrevocable trust established by one spouse that permits a beneficiary spouse access to the trust assets during the life of the settlor
without exposing the trust assets to the federal estate or GST taxes.
Using the jargon, a Settlor
gives legal control of their assets to a Trustee for the benefit of a clearly defined Beneficiary.
The party creating the trust is the creator or settlor
, the party holding the legal title to the property is the trustee, and the person who receives the benefit of the trust is the beneficiary.
For just over ninety years, Jolliffe has provided authority for the proposition that the subjective as well as the objective (2) intention of a settlor
at the time a trust was created should be considered by the court, and, if necessary, should outweigh the objective intention expressed in the trust instrument.
An overbroad exculpatory clause may be stricken by the court, thus defeating the original intent of the settlor