A grantor is the entity that establishes a trust and legally transfers control of those assets to a trustee, who manages it for one or more beneficiaries. In certain types of trusts, the grantor may also be the beneficiary, the trustee, or both.

Do co trustees have to act jointly?

California trust law requires that co-trustees act unanimously. If the trust instrument provides that co-trustees do not have to act unanimously, the instrument controls. The trust instrument may allocate certain powers to specific trustees. The allocation of powers among co-trustees does not have to be equal.

Who are the grantors and the trustees of a trust?

The grantor (also called the settlor, trustor, creator, or trustmaker) is the person who creates the trust. Married couples who set up one trust together are co-grantors of their trust. Only the grantor (s) can make changes to the trust. The trustee manages the assets that are in the trust. Many grantors choose to be the trustee …

Who is the successor trustee of a living trust?

My parents set up a living trust as joint trustees and used my fathers SSN Dad died, Mom survives but is incapacitated, I am the successor trustee. Do I need to get a new TIN?

Can a grantor trust be disregarded for income tax?

Certain types of trusts (such, as for example, a revocable trust) are disregarded not only for income tax purposes but also for federal estate and gift tax purposes. However, most types of grantor trusts are irrevocable trusts that are recognized for federal estate tax and other purposes but not for federal income tax purposes.

Who are the beneficiaries when a grantor dies?

Sometimes two or more adult children are named to act together. Sometimes a corporate trustee (bank or trust company) is named. Sometimes it is a combination of the two. The beneficiaries are the persons or organizations who will receive the trust assets after the grantor dies. What do I need to know now?