What is a grantor trust?

A grantor trust is a type of trust that is established under the law of Hawaii to manage the assets of a deceased person. It is also known as an irrevocable trust, as the assets placed in the trust cannot be revoked or changed. The grantor trust is set up to provide legal protection for the assets of the deceased, preventing them from being taken away from the heirs, creditors, or other parties. The grantor of the trust is usually the deceased person, although it can also be another party, such as a parent or a corporation. Within the trust, the grantor can choose to whom the assets should pass, when the assets should be distributed, and which assets should remain in the trust. For example, the grantor might decide that the trust will pass all of the assets to his children upon his death, or he might choose to keep some assets in the trust so that his grandchildren can benefit from them in the future. In Hawaii, a grantor trust can also provide tax benefits to the estate of the deceased. This is because the trust assets are not taxed as though they are owned by the deceased, but rather as if they are owned by the trust itself. This allows the estate to retain more of the assets and pass the majority of the estate to the heirs.

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