Grantor

What Does Grantor Mean?

A grantor is an individual who transfers their ownership rights over a property or asset to another party through a contract.

Insuranceopedia Explains Grantor

Grantor status is essential for transferring property to another party, such as when including property in a trust or selling it. In insurance, the term comes up most often in life insurance, where a grantor may set up a trust to own a policy or receive the death benefit, an arrangement that follows the beneficiary rules specific to life insurance. The recipient of this transfer is called the grantee.

The act of granting ownership is documented in a deed. The grantor can include specific provisions in the deed in addition to the full transfer of ownership. For example, in a lease agreement, the ownership of the property may revert to the grantor once the lease term expires.