situation. That is the irrevocable “grantor” trust, which is a trust that contains certain provisions set forth in the Internal Revenue Code, which defines these types of trusts. With a carefully drafted irrevocable grantor trust, the income is imputed to you as the creator of the trust, but the trust assets are not included in your estate for estate tax purposes. In other words, as trust maker, you must pay the income tax on all trust income, but trust assets will not be subject to estate tax at…
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