A settlor is the party whose role is to transfer control of an asset to a trustee, who then manages it on behalf of various beneficiaries. This is done by establishing a trust agreement. Trusts are used to hold money and other assets during the period following the death of the settlor, so that the associated assets can be readily transferred to the designated beneficiaries. This approach also keeps the assets away from probate court.
A settlor is also known as a grantor or trustor.