Grantor Trusts and Income Tax Reporting Requirements: A Primer

Probate Practice Reporter, Vol. 13, No. 1, 2001

9 Pages Posted: 14 Jul 2006  

Jonathan G. Blattmachr

Milbank, Tweed, Hadley & McCloy LLP

Bridget J. Crawford

Pace University School of Law

Abstract

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.

Keywords: income taxation, grantor trusts, trust, income, tax procedure, treasury regulations

JEL Classification: K34

Suggested Citation

Blattmachr, Jonathan G. and Crawford, Bridget J., Grantor Trusts and Income Tax Reporting Requirements: A Primer. Probate Practice Reporter, Vol. 13, No. 1, 2001. Available at SSRN: https://ssrn.com/abstract=916560

Jonathan G. Blattmachr

Milbank, Tweed, Hadley & McCloy LLP ( email )

1 Chase Manhattan Plaza
New York, NY 10005
United States
212-530-5066 (Phone)

Bridget J. Crawford (Contact Author)

Pace University School of Law ( email )

78 North Broadway
White Plains, NY 10603
United States

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