Part III Individuals, partnerships, trusts and collective investment schemes etc
Chapter II Settlements
General provisions
F168AMeaning of “settlor”
(1)
In this Act, unless the context otherwise requires—
(a)
“settlor” in relation to a settlement means the person, or any of the persons, who has made, or is treated for the purposes of this Act as having made, the settlement, and
(b)
a person is a settlor of property which—
(i)
is settled property by reason of his having made the settlement (or by reason of an event which causes him to be treated under this Act as having made the settlement), or
(ii)
derives from property to which sub-paragraph (i) applies.
(2)
A person is treated for the purposes of this Act as having made a settlement if—
(a)
he has made or entered into the settlement, directly or indirectly, or
(b)
the settled property, or property from which the settled property is derived, is or includes property of which he was competent to dispose immediately before his death, and the settlement arose on his death, whether by will, on his intestacy, or otherwise.
(3)
A person is, in particular, treated for the purposes of this Act as having made a settlement if—
(a)
he has provided property directly or indirectly for the purposes of the settlement, or
(b)
he has undertaken to provide property directly or indirectly for the purposes of the settlement.
(4)
Where one person (A) makes or enters into a settlement in accordance with reciprocal arrangements with another person (B), for the purposes of this Act—
(a)
B shall be treated as having made the settlement, and
(b)
A shall not be treated as having made the settlement by reason only of the reciprocal arrangements.
(5)
In subsection (2)(b) “property of which he was competent to dispose immediately before his death” shall be construed in accordance with section 62(10) (reading each reference to “assets” as a reference to “property”).
(6)
A person who has been a settlor in relation to a settlement shall be treated for the purposes of this Act as having ceased to be a settlor in relation to the settlement if—
(a)
no property of which he is a settlor is comprised in the settlement,
(b)
he has not undertaken to provide property directly or indirectly for the purposes of the settlement in the future, and
(c)
he has not made reciprocal arrangements with another person for that other person to enter into the settlement in the future.
(7)
For the purpose of this section and sections 68B and 68C property is derived from other property—
(a)
if it derives (directly or indirectly and wholly or partly) from that property or any part of it, and
(b)
in particular, if it derives (directly or indirectly and wholly or partly) from income from that property or any part of it.
(8)
In this section “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.