Difference Between a Grantor and a Grantee in Real Estate?

Grantor vs. Grantee in real estate is two terms that you’re likely to come across when dealing with real estate transactions. To understand the difference between the two, you’ll have to look at the broader context of the situation. So what exactly does Grantor vs. Grantee in Real Estate mean? And how do they apply to the process of buying and selling homes? When it comes to estate planning, most people think about trusts, irrevocable wills, and other complex legal structures. But real estate also plays an important role for many families.

If you own real estate that you want to leave to someone in your will, you may have heard the terms “grantor” and “grantee” when discussing your options with an estate lawyer or financial advisor. These are relatively uncommon terms in everyday conversation but fairly common among estate planning documents. So what do they mean? In this article, we’ll explain the differences between Grantor vs. Grantee in real estate as well as their implications for your will or trust.

What’s a Grantor?

A grantor is a person who creates an estate planning trust. In many cases, the grantor is also the person who transfers the title to the real estate in question to the trust. In some cases, however, the grantor may transfer the real estate directly to the trust, retaining a life estate. A life estate is a limited interest in real estate that lasts for the grantor’s life. Life estates are relatively rare compared to the number of trusts that own real estate. The grantor’s life estate is usually a limited interest in the sense that the trust owns the remainder interest.
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