Grantor Trust
Grantor trust is a term used in the Internal Revenue Code (IRC) to denote those trusts in which the trust grantor has retained such control over the trust, that the grantor is deemed the owner of the trust property or a portion of the trust property for purposes of federal income taxation while the trust itself is disregarded. As such, federal income tax liabilities or benefits associated with the trust are not imputed to the trust; rather, to the grantor.
This brief overview of some important considerations associated with grantor trusts is by no meanscomprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.
Updated on September 13, 2011