Grantor (Settlor)

The grantor is the originating party of a trust: the person whose assets fund the structure and whose intentions the trust document is meant to carry out. In estate planning, this is often a founder, inheritor, or senior family member who wishes to transfer wealth, protect assets, or provide for future generations. The grantor signs the trust agreement, selects the trustee, identifies the beneficiaries, and defines the rules governing distributions.

The grantor's ongoing legal relationship with the trust varies depending on trust type. In a revocable trust, the grantor typically retains control and can dissolve the trust at will. In an irrevocable trust, the grantor generally relinquishes control, a distinction with significant tax and asset-protection implications that a qualified attorney and CPA must evaluate for any specific situation.

A common confusion is treating "grantor" as purely a tax label. In tax law, a "grantor trust" has a specific meaning: income is taxed to the grantor rather than the trust itself. That tax treatment can be intentional and advantageous, but it is separate from the basic role of being the trust's creator. Families exploring how trusts fit into broader wealth structures may find Managing Substantial Wealth a useful starting point.