Estate Planning attorneys often have misperceptions about “grantor trusts.” Certainly, clients understand them even less. Grantor trusts are an income tax concept, not an estate tax concept. When a trust is a grantor trust, it is income taxed to the grantor, pursuant to sections 671 to 677 of the I.R.C. (If a trust is not a grantor trust as to the original grantor of the trust, then it may be taxed to a beneficiary if they had a general power of appointment, pursuant to section 678). All … [Read more...] about Grantor Trusts
