A person who makes a gift (AKA “settlement”) of money under a Deed is the usual way to establish a discretionary trust. The gifter of the money (“settlement”) is called the “Settlor” & the money gift the “settled sum”.
The Settlor can be anybody over the age of eighteen & not be a potential beneficiary under the trust being created. Generally your accountant, solicitor or family friend can be Settlor. Once the Settlor has been named, he/she makes a gift of the “settled sum”, usually a nominal amount paid by cheque, to the Trustee of the trust once the Deed has been signed by both. This “settlement sum” is paid to the Trustee & should not be reimbursed to the Settlor by anyone.
It is advisable for the settled sum to be deposited into a financial institution account separate from any other account opened in the name of the Trustee.
Once these duties have been effected by the Settlor, their role in the trust has been completed & no further undertakings necessary.