In the context of a Wyoming Statutory Trust (WST), the term “benefactor” usually refers to the Settlor (also called the Grantor or Trustor). This is the person or entity that creates the trust and provides the initial assets to fund it.
However, in a statutory trust, the roles can overlap significantly. Here is a description of the “benefactor” role and how it relates to the other parties.
1. The Settlor (The “Benefactor”)
The Settlor is the architect of the trust. In a Wyoming Statutory Trust, the Settlor’s primary roles include:
- Funding: They transfer the initial property, cash, or assets into the trust (or a specific series).
- Defining the Rules: They draft (with legal counsel) the Governing Instrument, which sets the rules for how the trust and its series will operate.
- Appointing Trustees: They choose the initial individuals or entities who will manage the assets.
2. The Beneficial Owner (The Recipient)
While the “benefactor” gives, the Beneficial Owner (or Beneficiary) receives.
- In Wyoming, a Statutory Trust is often used for business, so the “Beneficiary” is treated more like a shareholder in a corporation.
- They hold “Units” of beneficial interest.
- They are entitled to the profits and distributions produced by the trust assets.
[!TIP]
The “Self-Settled” Advantage: In Wyoming, the Benefactor and the Beneficiary can be the same person. You can create a trust, fund it with your own money, and remain the person who receives the benefits. This is a powerful tool for asset protection.
3. The Relationship Dynamics
To maintain a legal Wyoming Statutory Trust, you must distinguish between these roles in your paperwork:
| Role | Responsibility | Analogy |
|---|---|---|
| Settlor (Benefactor) | Creates and funds the trust. | The Founder |
| Trustee | Manages the assets and signs contracts. | The CEO/Board |
| Beneficiary | Receives the economic benefits/profits. | The Shareholder |
The “Merger” Warning
As mentioned previously, Wyoming law requires that the trust have a purpose and distinct interests. While you can be the Settlor, the Trustee, and a Beneficiary, you should ensure there is at least one other beneficiary (even if they only have a small percentage or a “contingent” interest, like a child or a secondary LLC) to prevent the legal “merger of title” which could void the trust’s protections.
Would you like me to show you how the Settlor’s name appears on the Wyoming “Certificate of Trust” filing versus the private “Governing Instrument”?