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The Grantor : Unsung Hero of Estate Planning – A Broken Arrow Trust Lawyer’s Perspective
Imagine you’re at a family reunion and your eccentric Uncle Kevin starts talking about how he’s become a “Grantor.” You roll your eyes, assuming it’s just another one of Kevin’s quirky hobbies. But little do you know, Uncle Kevin might just be the smartest person at the picnic table.
As a Broken Arrow 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. So, let’s demystify this role and show why Uncle Kevin 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. You will sometimes hear this role referred to as the Trustor or the Settlor – all three words mean the same thing. Regardless of the title preference, 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 by reviewing, understanding, and executing a legally binding trust agreement. This document outlines how the trust will operate and what it aims to achieve. It is usually drafted by an estate planning attorney.
- Defining Terms: The Grantor establishes the terms of the trust – essentially, setting the rules. They decide who the beneficiaries are, how the assets should be managed, and under what conditions they should be distributed. Want to ensure your grandchildren use their inheritance for education? As the Grantor, you can specify that in the trust terms.
- Appointing Trustees: The Grantor selects one or more trustees to manage the trust. This is a crucial decision, as the trustee will be responsible for carrying out the wishes according to the trust document when the Grantor can no longer act.
- Funding the Trust: A trust only governs the assets it controls. A perfectly drafted trust will not be effective if the trust is never funded. Thus, the Grantor is responsible for transferring ownership of their assets into the trust, which could include property, investments, or cash. An estate planning attorney can help make sure assets are aligned with estate plans and that the proper documents are utilized to transfer ownership.
Why Being a Grantor Matters
Don’t be overwhelmed by these responsibilities. An estate planning attorney can help set up a trust that makes it easy for you to step into the role of Grantor. The benefits far outweigh the burdens:
- Control: As a Grantor of a revocable living trust, you maintain control over how your assets are managed and distributed, even after you’re gone. Even in estate plans that include irrevocable trusts that nominate another person to act as trustee, the Grantor usually retains certain powers that give them rights while still accomplishing other goals.
- Protection: Some types of trusts protect you from probate or guardianship proceedings. Other types of trusts protect your assets from creditors and help you reduce taxes. Most trusts can pass assets to your beneficiaries with asset protection and tax planning.
- Privacy: There’s no reason your nosy neighbor needs to know who your beneficiaries are and how much money you’re leaving them. Wills must be probated in court to be enforceable, so they become public record. Details about your probate are even published in the newspaper and court hearings require “interested parties” to receive notice and have the opportunity to attend. In contrast, trusts are not public record and are administered outside of the court system by a trustee of your choice, offering much more privacy for your family.
- Flexibility: Trusts can be tailored to meet your specific needs and family situation. There are many types of trusts, and they can each be drafted with your unique goals and circumstances in mind.
Real-World Impact of Being a Grantor
Remember Uncle Kevin? Let’s say he set up a trust for his grandkids’ education. Twenty years from now, when little Ruby is heading off to college debt-free, she’ll be thanking her lucky stars for her forward-thinking grandpa. That’s the power of being a Grantor – you’re not just managing assets, you’re shaping futures.
Ready to Create Your Trust?
Being a Grantor isn’t just for eccentric uncles or millionaire tycoons. It’s for anyone who wants to protect their assets and provide for their loved ones. Whether you’re a small business owner, a new parent, or just someone who likes to plan ahead, you can step into the Grantor role.
Don’t let your hard-earned assets and your hopes for your loved ones’ futures be left to chance. Contact us at 918-608-1836 or click here to schedule a consultation with a Broken Arrow trust lawyer. We’ll help you embrace your role as a Grantor and create a legacy that stands the test of time.