Grantor

A grantor is an entity (typically a person) which transfers the ownership of its assets to another party known as a trustee by creating a trust. The term grantor is synonymous with the terms settlor, trustmaker and trustor.

Trusts are formed by the creating of special documents known as declarations of trust or trust deeds. These documents are created by grantors and lay out the terms and conditions attached to the transfer of their assets to trustees and the management of their assets by trustees. A declaration of trust also specifies how trustees or other trust beneficiaries will benefit from the trust.

Trust are commonly used in countries ruled by Common Law. Swiss laws defining and regulating trusts are still being developed, and the way in which trusts are defined differs slightly from the common law definition of trusts.

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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.

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