Many trusts are grantor trusts. A grantor trust is a fancy tax term for a trust whose income taxes are paid by the grantor or settlor (person who sets the trust up). The IRS Code has grantor trust rules (Code Secs. 671-678). Grantor trusts can be used effectively for estate planning to use a long standing gap between estate taxes and income taxes to save clients and their families money.
My law firm, Johnson Law KC LLC, is experienced counseling clients from all stages and walks of life on grantor trusts, taxes, and other estate planning issues. Call (913.707.9220) or email us (firstname.lastname@example.org) to schedule a free, convenient consultation.
(c) 2015, Stephen M. Johnson, Esq.