Why Does The Grantor Have To Be Non-Blood Related (Non-Consanguinity)
In an express trust, the grantor should not be related by blood or marriage so as to adhere to the law against fraudulent conveyances. The judge, in a court action involving the trust, will need to see the list of relevant parties to it, in camera. If the grantor was a family member of the trustee and the trustee was a beneficiary, especially sole beneficiary, this could lead to a revocation of the trust due to it being seen as a grantor trust in the court's eye. These rulings occur when there is shown to be no loss of control over the assets. The percentage of assets granted or invested into the trust does not determine control or ownership of the trust res. If one decides not to be a trustee and beneficiary, then a family member can be grantor.