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Grantor Trust |
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Grantor trust A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee under a custodial or trust agreement. Grantor Trust A trust where the grantor retains usufruct of the assets in the trust. That is, the grantor may continue to use the assets she has placed into the trust even after ceding technical ownership. A grantor trust is usually considered part of the grantor's estate when the grantor dies and, as such, can be subject to the estate tax. Grantor trust. An exchange traded fund (ETF) may be structured as a grantor trust. Such a trust holds a fixed portfolio of assets and issues shares based on the value of those assets. Shares in grantor trust ETFs are traded on the stock market throughout the day as other ETFs are. But unlike ETFs that are structured as investment company funds or unit investment trusts (UITs), grantor trusts aren't securities, don't track an index, and aren't rebalanced from time to time. Grantor trusts may own commodities -- such as gold or a currency -- or a portfolio of securities. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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