A grantor is a person who creates a trust or transfers property into it.
In plain language, the grantor is the person whose assets or instructions establish the trust arrangement. Some documents may use similar terms such as settlor or trustor.
Why it matters
The grantor matters because trust rights and duties often start with the grantor’s document and property transfer. The grantor may keep powers during life, name a trustee, identify beneficiaries, and set distribution instructions.
The term is important in living trusts, revocable trusts, tax discussions, and trust administration.
Where it appears
Grantor appears in trust agreements, living trusts, deeds transferring property into trust, beneficiary designations, and trust-account records.
Practical example
A parent signs a living trust and transfers a home into the trust. The parent is the grantor because the parent created and funded the trust.
How it differs from nearby terms
A grantor differs from a trustee. The grantor creates or funds the trust; the trustee manages trust property.
It also differs from a beneficiary, who receives trust benefits.
Related terms
Quick knowledge check
Question: What does a grantor do in a trust context?
Answer: Creates the trust, funds it, or both.