A Grantor is an individual or entity who has the legal right to transfer assets to another individual or entity. Grantors can be individuals, corporations, partnerships, or trusts. The asset being transferred can be real estate, cash, stocks, or any other thing of value.
What Are the Things a Grantor Can Do?
Grantors have the right to transfer assets to another individual or entity without having to go through the court or other legal institution. Grantors can also make revocable or irrevocable transfers of assets depending on their wishes at the time of the transfer. Grants can also be used to create trusts and other tax shelters to protect assets.
Examples of Grantors
One of the most common examples of a grantor is a parent attempting to transfer assets to his or her children. A parent could make a gift of cash, real estate, or stocks to a child or children with the intention of making the transfer tax-free. Other examples of grantors can include corporations transferring assets between divisions, partners transferring assets to another partner, or trusts transferring assets between trustees.
Conclusion
Grantors have the right to transfer assets from one ownership to another, without having to go through the court system. Examples of grantors can include individuals, corporations, partnerships, and trusts. Understanding the concept and implications of a grantor is important for business professionals to understand the various legal processes related to asset transfer.