Grantors

Grantor is a term used in several legal and financial contexts to designate the party who creates or funds a conveyance, trust, or program. In property law, the grantor is the person who transfers real property to another person or entity. Through instruments such as a grant deed or a deed of grant, the grantor conveys title to the grantee and may make certain warranties about the title. The transfer is effected by the grantor’s signature and delivery, and the grantee becomes the owner subject to any encumbrances.

In trusts and estates, the grantor (also called a settlor or trustor) creates a trust and transfers property into it. The grantor establishes the trust terms, such as who manages it (the trustee) and who benefits (the beneficiaries). Some trusts are revocable, allowing the grantor to modify or revoke them; in others the grantor may retain powers that affect tax treatment.

In philanthropy and government funding, the grantor is the entity that provides a grant, scholarship, or subsidy to a recipient program, organization, or project. Grantmaking entities include foundations, corporations, and government agencies.

Tax and accounting usage notes: in U.S. tax law, a grantor trust is one in which the grantor is treated as the owner of the trust assets for income tax purposes, so the trust’s income is taxed to the grantor.

Alternative terms include settlor, trustor, and donor, depending on context and jurisdiction.