Who is referred to as the grantor in a trust?

The individual establishing the trust is referred to as the grantor. This person creates the trust and determines how the assets within the trust will be managed and distributed, often outlining specific conditions for the beneficiaries who will receive benefits from the trust in the future. The grantor has significant control over the trust's terms and can modify them as long as they are alive and competent, depending on the type of trust established.

Understanding the role of the grantor is essential as it lays the foundation for the trust’s purpose and operation, distinguishing them from beneficiaries, who benefit from the trust; legal advisors, who provide counsel; and financial institutions, which may manage the trust assets but do not establish the trust itself.