Grantor Trust

Noun
1. a trust established to shift the income to someone who is taxed at a lower rate than the grantor for a period of 10 years or more
(synonym) Clifford trust
(hypernym) trust

A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee under a custodial or trust agreement.

Under U.S. tax law, income of the trust is taxed as the income of the grantor.