Creating Intentional Grantor Trusts
44 Real Prop., Tr. & Estate L.J. 207 (Summer 2009)
72 Pages Posted: 4 Aug 2020
Date Written: 2009
Abstract
The changes in the progressive tax structure over the past decades have greatly reduced the tax incentive to divert income from a taxpayer with substantial income to a trust or its beneficiaries. As a result, although grantor trusts were once avoided, the "intentional grantor trust" has become a viable option that can, if properly structured, produce significant tax savings for many taxpayers. In this Article, the authors present an overview of the mechanics of a grantor trust and provide guidance on how to structure an intentional grantor trust to produce tax savings and avoid the potential hazards that may arise.
Keywords: tax, tax structure, intentional grantor trust, tax incentive
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