TheTaxHeaven Dictionary - Know the meaning of tax


What is Transferor? 

A transferor is a person or entity that passes ownership or rights to another. 

In law, a transferor grants property, rights or assets to another party, the transferee. They can be known as the grantor, assignor, or donor, depending on the transfer type. For example, in a property sale, the seller is the transferor. The party giving intellectual property rights is also a transferor. 

Transferor vs Transferee 

The key difference between a transferor and a transferee is that a transferor gives ownership or rights, while a transferee receives them. 

The transferor initiates the transfer of assets, property or rights. They can be an individual, company, trust, or other legal entity with permission to make transfers. The transferee, on the other hand, is the receiver of these rights or assets. They can be an individual, a company, or another legal entity. The transferee may also be called the grantee, assignee, or donee, depending on the transfer type. 

In short, the transferor gives, and the transferee gets. 

Transferor in Modern Times 

Transferors are very important today, especially in business and finance. Here's why: 

Business Transactions: Transferors are important in business transactions like mergers and acquisitions, where they transfer company assets or shares to another entity. 

Intellectual Property Rights: Transferors are crucial for transferring intellectual property rights. For instance, a company selling its patents would act as a transferor. 

Trusts and Donations: Transferors are also key in creating trusts or making charitable gifts. In these instances, the transferor passes ownership of assets to the trustee or charity.