GRANTOR

Summary

A grantor is the person who establishes a trust by transferring their assets into it. Think of the grantor as the 'founder' of the trust - they decide what property goes into the trust, who will benefit from it (beneficiaries), and who will manage it (trustee). The grantor essentially gives up direct ownership of the assets in exchange for the benefits that come with having a trust structure, such as estate planning advantages or asset protection.

Usage Context

Understanding the grantor's role is essential when studying trust formation, estate planning, fiduciary relationships, and the rights and responsibilities of different parties in trust arrangements.

Common Confusions

• Confusing the grantor with the trustee (the grantor creates the trust, the trustee manages it)
• Thinking the grantor always loses all control over trust assets
• Confusing grantor with beneficiary roles
• Not understanding that grantor, settlor, and creator are the same person with different names