grantor


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Related to grantor: grantor trust

Grantor

A trader in the options market who makes premium income by selling options.

Grantor

1. The writer of an option contract.

2. The person who creates a trust. The grantor places assets in the trust on behalf of a beneficiary and allows the trustee to administer them for a certain period of time.

grantor

An investor who sells short a call option or a put option. The grantor of a call option agrees to sell stock at a fixed price and the grantor of a put option agrees to buy stock at a fixed price.

grantor

A person who gives title to real estate via a deed.

References in periodicals archive ?
Such unfunded trusts are commonly set up as a "defective" irrevocable trust meaning that it will be treated as a grantor trust for tax purposes and any income will be reported and taxed to the grantor.
Clearly, the grantor cannot have the power to amend the trust agreement without adverse estate tax consequences.
A final drawback, which is the subject of the new rule, is that if the grantor does not survive the GRAT term, the full value of the GRAT apparently will be included in the grantor's estate.
Obviously, the trust would have to provide for a successor trustee should its provisions survive the grantor, and the grantor was originally named trustee.
The trust owns the life insurance policy and is the beneficiary of a policy insuring the grantor.
There is no sound tax policy why a transfer to an "equivalent of a trust" should be recognized to transfer ownership under section 404A, but not under the grantor trust rules.
671-4(b)(2)(i)(A) is available as long as the grantor trust is treated as owned by only one person.
Whether the grantor's lifetime transfer of an installment note issued by a grantor trust to a person who is not the grantor of the trust is treated as an income tax disposition that requires the reporting of gain.
Consequently, by passing property to the family through a revocable trust rather than under the grantor's will, the grantor can avoid publicly disclosing who received what and how much.
The trust also allows the grantor the opportunity to remove future appreciation from the grantor's estate while maintaining control over the assets.
As a result, subsequent creditors, purchasers, or lenders of the grantor may assert their claims against the property.