Learn or Find Bookkeeping, Payroll, Accounting, QuickBooks, or Tax Terms
Select a letter below or enter a term or keyword.
Grantor trust
A grantor trust is one in which the grantor retains control over the income or principal, or both, to such an extent that the grantor is regarded as being substantially the owner of the trust property and of the income. The grantor is taxable on this trust income. The law contains specific tests to find whether the grantor is the substantial owner of the trust property.