Ontario Estates Law Practice Exam

A trust is established by a settlor, who is the individual that creates the trust by transferring assets into it for the benefit of the beneficiaries. The settlor's intent to create the trust is manifested through a trust document, which outlines the terms, conditions, and purpose of the trust. This crucial role of the settlor empowers them to define how the trust's assets should be managed and distributed, differentiating their role from that of the trustee and beneficiary.

The trustee is the individual or entity responsible for managing the trust assets according to the terms established by the settlor, ensuring that the trust's purpose is fulfilled. The beneficiaries are the individuals or entities that benefit from the trust but do not have the authority to create or establish it. The testator is a person who makes a will and may create trusts within that will, but they are not the ones who establish a trust in the more general sense outside of the context of their will.

This distinction highlights the settlor's foundational role in trust creation, establishing them as the correct choice in the context of who establishes a trust.