What role does a grantor have in a trust?

The role of a grantor in a trust is fundamentally that of the individual or entity that establishes the trust and defines its parameters. The grantor is responsible for drafting the trust agreement and determining how assets will be managed and distributed. This includes specifying the beneficiaries who will receive the trust assets and any conditions or instructions that should govern the trust, such as when and how distributions will occur.

This foundational role is critical because it dictates the entire structure and functionality of the trust. By creating the trust and specifying its terms, the grantor sets the stage for how the trust is to operate, ensuring it aligns with their intentions for asset management and distribution.