Imagine you’re at a family reunion, and your eccentric Uncle Bob starts talking about how he’s become a “Grantor.” Your cousin Sarah rolls her eyes, assuming it’s just another one of Bob’s quirky hobbies. However, what she doesn’t realise is that Uncle Bob might just be the smartest person at the picnic table.
As a Cranberry Township trust lawyer, I can tell you that being a Grantor isn’t about joining some secret society or learning a new dance move. It’s about taking control of your legacy and protecting your family’s future. Let’s demystify this role and show why Uncle Bob deserves a high-five instead of an eye-roll.
What Exactly Does a Grantor Do?
A Grantor, simply put, is the person who creates a trust and the role involves much more than just signing a few papers. Here are the key responsibilities of a Grantor:
- Creating the Trust: The Grantor is responsible for establishing the trust. They need to draft a legally binding trust agreement outlining how the trust will operate, and what it aims to achieve.
- Defining Terms: As the Grantor, you set the rules, and you decide who the beneficiaries are. You also make decisions about how the assets should be managed, and under what conditions they should be distributed. You can specify in the trust terms, if you want your grandchildren to use their inheritance for education.
- Appointing Trustees: The Grantor selects one or more trustees to manage the trust. This is important because the trustee will be responsible for carrying out your wishes according to the trust document.
- Funding the Trust: A trust is only effective if it has assets, and the Trustor is responsible for transferring the ownership of assets into the trust. This could include property, investments, or cash.
Why Being a Grantor Matters
Being a trust lawyer, I’ve seen how being a Grantor can make a world of difference:
- Control: As a Grantor, you maintain control over how your assets are managed and distributed. This applies even after you’ve passed away.
- Protection: Trusts can protect your assets from creditors and potentially reduce estate taxes.
- Privacy: Trust details are not made public, offering more privacy for your family.
- Flexibility: You can tailor Trusts to meet your specific needs and your family’s situation.
The Real-World Impact of Being a Grantor
If Uncle Bob set up a trust for his grandkids’ education, it will benefit Tim who is heading off to college, and will be debt-free. As a Grantor Uncle Bob was not only managing assets, but also shaping the future for his grandkids.
Ready to Create Your Trust?
Being a Grantor isn’t just for eccentric uncles or millionaire tycoons. Anyone who wants to protect their assets and provide for their loved ones can be a Grantor. This applies to a small business owner, a new parent, or someone who likes to plan ahead.
Don’t let your hard-earned assets and your hopes for your loved ones’ futures be left to chance. Contact us at 724 841 1393 to schedule a consultation with us at the Sechler Law Firm, but we also recommend that you register to attend one of our Three Secrets Workshops, which you can register for on our website HERE. We’ll help you embrace your role as a Grantor and create a legacy that stands the test of time.
