Grantor Trust

A grantor trust is a type of legal arrangement where the person who creates the trust (the grantor) retains certain control or benefits, so for tax purposes, the trust's income and assets are treated as the grantor's own. This means the grantor reports income from the trust on their personal tax return, and the trust itself isn’t taxed separately. Grantor trusts are often used in estate planning to manage assets efficiently, provide flexibility, and potentially reduce taxes, while still allowing the grantor to maintain significant control over the trust's assets during their lifetime.