Legal glossary

Grantor trust

Grantor trust: For federal income tax purposes, a trust whose income is taxed to the grantor (settlor) because the grantor keeps certain powers or interests, under 26 U.S.C. §§ 671 to 679. A revocable trust is usually a grantor trust.

Grantor trust — an educator on a video call

What grantor trust means

Put simply, grantor trust is part of the working vocabulary of a civil case. The short definition above covers the usual meaning. Still, a specific rule, statute or contract can give it a narrower meaning. For that reason, check how it is used in your own documents.

Where grantor trust comes up

The term is used across many kinds of cases. For example, you may see it in pleadings, motions and court orders. To see it in context, browse the motions and procedures library or the Learn the Law topics.

Read the source: Revocable vs. irrevocable trusts.

How to research the term

Start with the primary source. For example, if grantor trust appears in a federal rule, read the rule itself and its official notes. After that, check your court’s local rules and any standing orders from the judge. In addition, search recent decisions from your own state or federal district. They show how courts read grantor trust in practice. Because state rules often differ, our state procedures guide links to each state’s official rules. Above all, make sure the version you read is still in force.

You can read the current federal court rules online for free.

Related legal terms

  • Good cause: a legally sufficient reason. Many rules require a showing of good cause before the court will grant a request.
  • Good faith: honesty of intention, without intent to defraud or take unfair advantage.
  • Government: the institutions and officials through which a political community makes and enforces its laws.
  • Grant deed: a deed used in California and some other states in which the grantor, by using the word "grant" to convey the property, makes two promises implied by law unless the deed says otherwise: that the grantor has not already conveyed the property or any interest in it to someone else, and that the property is free from encumbrances made or allowed by the grantor or anyone claiming under the grantor (Cal.

Why precise terms matter

Courts read legal terms closely. As a result, knowing the exact meaning of a word helps you follow orders, rules and filings. Each glossary entry on Lawtopolis is short on purpose and links to the pages where the term is used.

Sources

Sources last reviewed: 2026-10-24

Lawtopolis provides legal information and education, not legal advice. Using this site does not create an attorney-client relationship. Laws and court rules vary by jurisdiction and change over time; verify every authority against the official source and consult a licensed attorney in your jurisdiction about your situation.