what is a tax shelter 
a tax shelter is an arrangement that holds assets or money in such a way as to reduce or avoid taxation on their value they re not necessarily illegal but they can be some employer sponsored retirement plans are considered to be tax shelters as are financial accounts held and maintained in other countries grantor trusts once served as a form of legal tax shelter as well 11can a grantor act as trustee of their grantor trust in some cases yes the trust must be revocable because the law allows this type of trust to be changed or undone after formation the grantor trustee would typically name a successor trustee to take over at the time of their death or in the event of incapacitation that prevents them from managing the trust themselves 12the bottom linethe grantor of a personal trust is typically its creator the grantor transfers their assets money and property into the ownership of the trust except in the case of a grantor trust the creator grantor is still considered the owner for income and estate tax purposes and can dissolve orchange the trust s terms in the case of a revocable trust several intricate rules apply however which is why rules have been established in the internal revenue code to govern these tax implications always consult with an attorney to help you decide whether the option of a grantor trust is right for your estate plan 