Grantor Trusts

A Grantor Trust is a type of trust where the person who creates it (the grantor) retains control over its assets and income. For tax purposes, the grantor is treated as the owner, meaning they report the trust's income on their personal tax return. This arrangement allows for flexibility in managing assets and can help with estate planning. Grantor trusts can also help avoid probate, making it easier for beneficiaries to inherit assets. However, since the grantor retains control, the trust's assets may be subject to the grantor's creditors.