Creating Grantor Trusts

Gallo, Jon J.
August 2010
Journal of Financial Planning;Aug2010, Vol. 23 Issue 8, p38
Academic Journal
The article focuses on grantor trusts and how they are created. It says that a grantor trust is legitimate under state law and is acknowledged by the IRS for purposes of the property, gift, and generation-skipping taxes. It further reveals that one of the most complex issues in some estate plans is choosing the specific approach that will result in a trust classified as a grantor trust for income tax purposes without causing unfavorable estate tax outcomes. Several ways to create grantor trust status without causing the assets of the trust to be integrated in the grantor's gross are also presented.


Related Articles

  • When to Use a Qualified Personal Residence Trust. CULLIGAN, MICHAEL // New Jersey CPA;Sep/Oct2011, Issue 29, p32 

    The article provides tips on how and when to use a qualified personal residence trust (QPRT). It states that QPRT can be obtained by understanding the differences and similarities of one trust to another. It considers the effective use of QPRT in providing flexible services because it permits...

  • Reducing immediate taxes leaves the funds in your "jeans". Bissonette, Laurie // Northern Ontario Business;Mar2012, Vol. 32 Issue 5, p5 

    The article offers the author's insights regarding the importance of controlling and reducing corporate and personal income taxes.

  • Spring Hope. Black, Pamela J. // Bank Investment Consultant;May2009, Vol. 17 Issue 5, p6 

    The article discusses various reports published within the issue, including one by Dick Ayotte concerning the 2009 TPM Report Card, a cover story entitled "Who are the Best TPMs?," and another one concerning the use of a grantor-retained annuity trust in transferring wealth to children.

  • A Great Time For GRATs. Stock, Howard J. // Bank Investment Consultant;May2009, Vol. 17 Issue 5, p30 

    The article offers information about grantor retained annuity trusts (GRATs) which is considered as the very attractive strategy for passing assets to the childrens of wealthy clients. It notes that GRAT is a way of passing assets to someone at a reduced gift-tax cost, however, it requires...

  • Tax Law Update.  // Trusts & Estates;Dec2009, Vol. 148 Issue 12, p10 

    The article presents an update of tax laws in the U.S. Grantor trust status is not interfered by the "hanging" withdrawal right of beneficiaries in Private Letter Ruling 200942020 dated October 16, 2009. Included in the taxpayer's estate and indirect gifts of underlying assets are family limited...

  • Grantor Trusts and Tax Liability: Revenue Ruling 2004-64. Szerlip, Nathan // CPA Journal;Sep2005, Vol. 75 Issue 9, p60 

    Focuses on payment and reimbursement of income tax liability that arise from a grantor trust under the Revenue Ruling issued in the U.S. on July 6, 2004. Definition of a grantor trust; Factors that contribute in the inclusion of discretionary reimbursement by an independent trustee in the...

  • Florida Homestead Transfers: The Advantages of Short-term Qualified Personal Residence Trusts. Chamberlain, Steven M. // Florida Bar Journal;Nov2002, Vol. 76 Issue 10, p51 

    Discusses the advantage and disadvantage of Qualified Personal Residence Trusts, a device to transfer a remainder interest in a residence in an efficient manner from a gift tax perspective. Measurement of the gift by subtracting the value of what the grantor retained; Loss of a step-up in basis...

  • Creative Uses of QPRTs. Gallo, Jon J. // Journal of Financial Planning;Feb2002, Vol. 15 Issue 2, p28 

    This article focuses on the qualified personal residence trust (QPRT) and suggests some creative uses that should be kept in mind by the sophisticated estate planner. A QPRT is essentially nothing more than a pre-Chapter 14 GRIT funded exclusively with an interest in the grantor's personal...

  • Lead By Example While Leaving A Legacy. Hayes, Sonja // National Underwriter / Life & Health Financial Services;6/4/2007, Vol. 111 Issue 22, p20 

    The article discusses on the use of a charitable lead annuity trust (CLAT) in reducing the value of a client's taxable estate while, providing financial assistance to the charity of choice. The CLAT functions similarly to a charitable remainder annuity trust, except that the current payments are...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics