The individual or entity who establishes a trust to hold real property is known as the grantor of that trust. This party transfers ownership of real estate to the trust, relinquishing direct control to a trustee who manages the assets according to the trust’s terms. For example, an individual establishing a living trust to manage their assets during their lifetime and distribute them upon their death acts as this grantor, conveying their real estate holdings into the trust’s ownership.
Understanding this role is fundamental in estate planning and asset protection strategies. Properly structuring a trust and clearly defining the powers and responsibilities related to it can safeguard assets from potential creditors, minimize estate taxes, and ensure a smooth transfer of property to beneficiaries. Historically, the use of trusts to hold property has been a mechanism for preserving wealth and ensuring continuity of ownership across generations.
