Grantor Trusts and Income Tax Reporting Requirements: A Primer
Jonathan G. Blattmachr
Milbank, Tweed, Hadley & McCloy LLP
Bridget J. Crawford
Pace University School of Law
Probate Practice Reporter, Vol. 13, No. 1, 2001
In the last decade, grantor trusts have become a cornerstone of many sophisticated estate plans. Although clients and their advisors employ grantor trusts with great frequency and success, few taxpayers and not all estate planning professionals are fully conversant with the income tax reporting requirements for grantor trusts. Some erroneously assume that because grantor trusts are "ignored" for purposes of calculating taxable income, they are also ignored for purposes of reporting taxable income. this is not always the case, however. This article explains the complex rules with which taxpayers and their advisors must comply for reporting income of grantor trusts. The article includes a visual flowchart of the procedural steps that must be followed to comply with applicable Treasury Regulations.
Number of Pages in PDF File: 9
Keywords: income taxation, grantor trusts, trust, income, tax procedure, treasury regulations
JEL Classification: K34Accepted Paper Series
Date posted: July 14, 2006
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