who is the grantor of a trust

The grantor is the person who sets up a trust which is an important part of an estate plan. It is the person who funds the trust.

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A grantor includes any person to the extent such person either creates a trust or directly or indirectly makes a gratuitous transfer of property to a trust.

. As in any contract someone must initiate the contract Grantor or Trustee. The grantor trust status terminates with the death of the grantor. In certain types of trusts the grantor. A grantor is the entity that establishes a trust and legally transfers control of those assets to a trustee who manages it for one or more beneficiaries.

The grantor of a trust is the person who provides the property or other funds to the trust that becomes the trust corpus assets. However the person who creates the trust is also known as the grantor of the trust. Obviously if the trust terminates and the property is paid outright to its individual beneficiaries issues of ongoing trust income taxation become irrelevant. Conveying assets and property into the trust Designating the trust beneficiaries Naming a trustee and a successor trustee.

The grantor often establishes in the trust instrument the terms and provisions of the trust relationship between the grantor the trustee and the beneficiary. A strong estate plan starts with life insurance Get free quotes The grantors responsibilities include. A grantor trust is a trust in which the individual who creates the trust is the owner of the assets and property for income and estate. The purpose of a TRUST is to create an Artificial Legal Person to protect hold and manage your private wealth for the benefit of your heirs.

In most cases the person who funds the trust is identified in the trust agreement as the person who created the trust ie. The trust itself may be a grantor in that it transfers ownership of property in the trust to a new owner for instance if real estate held in the trust is sold. The trust instrument must be reviewed to determine what happens to the trust property after the death of the grantor. That is the creator of the trust grants legal authority or property to the trust.

The contract trust agreement must specify the who what where when why and other conditions.

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