Is the settlor the UBO?

Asked by: Lew Nader  |  Last update: January 24, 2026
Score: 4.9/5 (32 votes)

Trusts: In the case of trusts, the UBO may be the settlor, trustee, protector, or beneficiaries, based on who holds ultimate control over the trust's assets or decisions. This requires a thorough understanding of each party's role and authority in the trust.

Is the settlor the Ultimate Beneficial Owner?

[In the context of legal arrangements, beneficial owner includes: (i) the settlor(s); (ii) the trustee(s); (iii) the protector(s) (if any); (iv) each beneficiary, or where applicable, the class of beneficiaries or objects of a power; and (v) any other natural person(s) exercising ultimate effective control over the ...

Is a settlor of a trust a beneficial owner?

11 Further, as to a revocable trust, the settlor thereof will be treated as the beneficial owner of the securities if he has the power to revoke the trust without the consent of another person.

Who is considered the UBO of a trust?

An Ultimate Beneficial Owner (UBO) is any natural person that ultimately owns or controls the customer and/or the natural person on whose behalf a transaction or activity is being conducted.

Is the settlor also the beneficiary?

The settlor: The settlor is the person responsible for setting up the trust and naming the beneficiaries, the trustee and, if there is one, the appointor. For tax reasons, the settlor should not be a beneficiary under the trust. The trustee: The trustee (or trustees) administers the trust.

What is a Settlor?

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Who is considered the settlor?

A settlor is the entity that establishes a trust. The settlor goes by several other names: donor, grantor, trustor, and trustmaker. Regardless of what this entity is called, its role is to legally transfer control of an asset to a trustee, who manages it for one or more beneficiaries.

Who is beneficiary or settlor?

Generally a settlor is a person who transfers value in cash or kind to the trust for the benefit of the beneficiaries. You're also a settlor if you both: provide financial assistance to a trust (or for the benefit of the trust) with an obligation to pay you back on demand.

Who qualifies as a UBO?

While jurisdictions may interpret the specifics of this definition differently, it is commonly agreed that an ultimate beneficial owner or UBO owns more than 25% of a company's shares, or controls more than 25% of the voting rights. However, determining the UBO of a company is not always a straightforward task.

How to identify the ultimate beneficial owner?

How to identify an Ultimate Beneficial Owner?
  1. Acquiring the entity's credentials. ...
  2. Researching the ownership chain. ...
  3. Identifying and verifying the UBO. ...
  4. Undertaking an AML and/or KYC and KYB check.

Who qualifies as the ultimate beneficial owner of a trust?

The settlor, the trustee, the protector, the beneficiaries and any natural person exercising ultimate control or influence over a trust by means of ownership or by other means should be all identified as UBOs.

Who is considered the beneficial owner of a trust?

A beneficial owner is a person who enjoys the benefits of ownership though the property's title is in another name. Beneficial ownership is distinguished from legal ownership, though in most cases, the legal and beneficial owners are one and the same.

Can a settlor be a trustee as well?

The settlor can appoint himself a trustee. As trustee he has a legal interest (TSEM6018) in the property. But he cannot do what he likes with the property. As a trustee he holds the assets in a fiduciary capacity.

Who is the settlor vs trustee vs grantor?

In estate planning, “grantor” and “settlor” mean the same thing. The settlor of a trust is the person who creates a trust. This includes funding the trust and making important decisions, like who should manage or benefit from the trust. This person is also sometimes referred to as a “trustor.”

How to identify UBO of a trust?

Where the trust has a corporate trustee, the company extract will contain the shareholders. If the corporate trustee is owned by other companies, the shareholders of those companies must also be reviewed, to determine the ultimate beneficial owner of the corporate trustee.

What power does a settlor have?

The settlor has a limited but fundamental role in creating a trust. A trust does not exist until the settlor expresses an intention for the trust to exist and transfers the settled sum to the trustee. If a settlor is not independent to the trust serious tax consequences arise.

What if there is no UBO?

If the ultimate beneficial owner cannot be identified, it should be documented by conducting an appropriate legal analysis. This should include not only a description of the capital structure, but also a consideration of each of the grounds for identification of the UBO indicated in the Polish AML Act.

Who are the ultimate beneficial owners?

When it comes to Ultimate Beneficial Ownership (UBO), the most common UBO meaning refers to the natural person who is ultimately responsible for, owns or controls a 'customer'. In most cases, this 'customer' is an institution, business or legal entity: of which the UBO has 100% direct ownership.

What is the difference between a PSC and a UBO?

A person of significant control has direct or indirect influence on the running of a company; an ultimate beneficial owner has direct or indirect ownership of a company but doesn't necessarily have influence over it.

How do I determine if I'm a beneficial owner?

Generally, someone who holds at least 25% of the capital stake, voting powers, and/or profit rights for an asset is considered a beneficial owner (or ultimate beneficial owner, if their ownership share is among the highest for that asset).

How do you identify an UBO?

How is an Ultimate Beneficial Owner (UBO) Identified?
  1. Verify the company's legitimacy. Using reliable documents and data sources, gather and verify key information about the company, such as its name, address, and list of top management.
  2. Assess the ownership chain. ...
  3. Review UBO data. ...
  4. Conduct KYC verification.

What is the identification of the ultimate beneficial owner?

Common thresholds used to define a UBO include those who own at least 25% of the company's shares, hold more than 25% of the voting rights, or otherwise exert control over the business through other means such as decision-making power.

Can a CEO be a UBO?

There are three types of ultimate beneficiary: 1) Directors holding a formal office from the Board of Directors such as the CEO, the CFO or the treasury manager, and “deputy” corporate officers in the general sense.

Is the settlor the owner?

A trust is an agreement by the person who owns property (the "settlor") to give ownership of and control over the property to another person (the "Trustee"). The Trustee agrees to manage the property for the benefit of one or more persons chosen by the settlor (the "beneficiaries").

Can the settlor be the beneficiary?

Yes, the settlor of a trust can also be a beneficiary. However, this situation, known as a “settlor-interested” trust, can have significant tax implications and requires careful consideration. These specific tax rules relate to the three main taxes: Income Tax, Capital Gains Tax, and Inheritance Tax.

What is the role of the settlor?

If we're looking at the transaction of setting up a trust, the settlor is the person who hands over the settlement sum to the trustee, along with the list of rules that create the trust. Usually, the settlor will be either the deed provider, if you buy a trust deed off the shelf, or it can be your accountant or lawyer.