Grantor

What is a grantor?

In finance or government, a grantor generally refers to an organization that gives grant awards to a recipient in order to fund a specific purpose. Corporate sponsors or government agencies may act as grantors to further a pursuit that's of interest to them.

In law, the grantor typically refers to the party that transfers ownership of land or property in a legal document. For example, a grantor—also called a settlor or trustor—transfers assets into a trust for the sake of one or more beneficiaries. The trust is then managed by a trustee, who may or may not be separate from the grantor. 

People may opt to create a trust as part of an estate plan to reduce the grantor's taxable estate (minimizing estate taxes), bypass probate court, or protect personal property from creditors. Grantor trusts are a type of trust that allows the grantor to remain in control of the trust's assets.

Is the grantor the same as the owner?

Yes, the grantor is the original owner of the property or asset who transfers ownership to a beneficiary, or recipient. However, on a mortgage, the grantor is the borrower who "grants" ownership of their property as collateral for a loan. 

What power does a grantor have?

That depends on the context of the grantor-grantee relationship. For example, some trusts—such as a revocable living trust—offer the grantor more control than others. Consult an estate planning attorney if you want more tailored advice on what type of trust is best for you. 

What's the difference between a grantor and grantee?

In short, the grantor is the party that gives something (like property or funding), while the grantee—or beneficiary—is the party that receives something. A grantee is not the same as a trustee, who manages a trust for a beneficiary.

What is a grantor in real estate?

In real estate, a grantor is generally the individual or entity that transfers ownership of a property to another party, such as the seller in a property sale. For example, in a quitclaim or warranty deed, the grantor signs the deed to officially transfer the property's title to the grantee.