Grantor / Settlor

The grantor's role is foundational: without someone to contribute assets and sign the trust agreement, the trust does not exist. In many trust structures the grantor also retains certain rights. The ability to revoke the trust, change beneficiaries, or receive income. Though retaining rights can affect how the trust is treated for tax purposes. Families should work with qualified attorneys and CPAs to understand what rights, if any, a grantor should retain given their specific goals.

The term "settlor" means the same thing as grantor and the two are often used interchangeably, though different jurisdictions and different attorneys may favor one over the other. A trustee is a separate role and can be a different person entirely, though in some revocable trusts the grantor and trustee are initially the same individual. When the grantor later becomes incapacitated or dies, a successor trustee steps in, a detail the trust agreement should address explicitly.

Consider a founder who sold her software company and placed a portion of the proceeds into an irrevocable trust for her children. She is the grantor: she decided the terms, transferred the assets, and gave up certain control in exchange for whatever legal or tax objectives the structure was designed to achieve. Her role as grantor is complete once the trust is funded; ongoing administration belongs to the trustee. Understanding this distinction helps families see why legal entity planning requires both careful drafting and clear role assignments.