Grantor Trust means:
a trust that has beneficiaries other than the grantor but, because interests or certain powers over the trust, are retained, all income of the trust is taxed to the grantor. Former IRC (check if this IRC provision is current here) §§671-677.
Description and Definition of Grantor Trust
A trust in which the grantor retains some interest and control and as a result is taxed on any income from the trust.