**Grantor** (noun) — The person who creates a trust and transfers property or assets into it, also known as the settlor, trustor, or trust creator, retaining the right to specify how the trust assets are managed and distributed.
A grantor is someone who sets up a trust. If you create a trust and transfer your assets into it, you're the grantor. You're the person who decides what property goes into the trust, who benefits from it, and what rules the trustee must follow.
The grantor makes all the key decisions when establishing the trust. You choose who will serve as trustee to manage the trust assets. You name the beneficiaries who will benefit from the trust. You specify when and how distributions should be made. You set out any conditions or restrictions on how the trust operates.
Different terms are used in different contexts and jurisdictions. In the United States, "grantor" is common, but you might also see "settlor" (particularly in the UK and Australia) or "trustor." These all mean the same thing—the person who creates the trust.
⏱ When you'll encounter this term
When you create a trust as part of your estate plan, you're the grantor. You might set up a family trust to hold investments, a testamentary trust that takes effect when you die, or a revocable living trust that you can change or cancel during your lifetime.
Being the grantor doesn't necessarily mean you lose control of the assets. With a revocable trust, you can usually serve as trustee yourself, managing the assets just as you did before, and you can modify or dissolve the trust at any time. With an irrevocable trust, you give up more control, but you might gain other benefits like asset protection or tax advantages.
The grantor's choices determine how the trust functions. If you're vague about your wishes or create contradictory instructions, the trustee may struggle to administer the trust properly. If you choose an unsuitable trustee or create unreasonable conditions, the trust might fail to achieve your goals. Careful planning when you're the grantor ensures the trust works as intended for your beneficiaries.
**Related terms:** [Trust](/dictionary/trust), [Settlor](/dictionary/settlor), [Trustee](/dictionary/trustee), [Beneficiary](/dictionary/beneficiary)
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