What is a grantor?

A grantor is an individual or legal entity that creates a trust. In trusts and estates law in Minnesota, a grantor is someone who sets up a trust through which they can manage, protect, and transfer their assets to their beneficiaries. A grantor creates the trust, determines its terms, and appoints a trustee to manage the trust on behalf of the beneficiary. The grantor can also specify when the trust can be administered and when its assets can be distributed. In other words, a grantor has the power to determine how the trust is managed and who will receive benefits from it. The grantor’s decisions will be legally-binding, as the trust is enforced by the law. Grantors can also modify the trust whenever they want, as long as it is done according to Minnesota’s laws. Grantors may also be responsible for paying taxes on any income or capital gains generated by the trust. Ultimately, a grantor is the one who sets up a trust, and is responsible for its management and terms.

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