Grantor trusts are a thing of beauty (well, for a tax geek, anyway). All of the income of a grantor trust is taxed to the grantor of the trust, even if it is distributed to the beneficiaries. A non-grantor trust, by comparison, is taxed to the trust itself or to the beneficiaries (if there are distributions carrying out “distributable net income”). The result is that a trust could be set up for which the income tax liability is that of the grantor. Of course, this makes sense in the case of a … [Read more...] about Grantor Trust: Use Them While You Can
