Grantor

A grantor is a person who transfers property or other interests to another party. The term is used in various areas of law, including real estate and trusts, and the exact meaning can depend on the context and jurisdiction.

In real estate, the grantor is the party who conveys or transfers title to a property to a grantee through a deed. The grantor signs the deed, describes the conveyed interest, and delivers the deed to effect the transfer. Common deed types include warranty deeds and grant deeds, and the grantor’s interest must exist at the time of conveyance. The counterpart to the grantor is the grantee, the recipient of the property.

In trusts, the grantor (also called the settlor or trustor) is the person who creates the trust and transfers assets into it. The grantor may retain control or certain powers over trust assets, depending on the trust form. In revocable living trusts, the grantor typically remains in control and is treated for tax purposes as the owner of the trust assets under grantor trust rules. Consequently, the grantor reports trust income on their own tax return, and the trust is not taxed as a separate entity. Irrevocable trusts, by contrast, usually separate the trust from the grantor for tax purposes, reducing the grantor’s direct tax responsibility.

Terminology varies by jurisdiction and context. While “grantor” is commonly used in real estate and grantor trusts, other terms such as donor, settlor, or trustor may be used to describe the party initiating the transfer, depending on the circumstance.