Requirements that qualify trust income to be taxed at the grantor's income tax rate, not at a trust fund rate. In order to qualify the grantor must have a reversionary interest of greater than 5% of the total fund value.
Related information about grantor trust rules:
- Grantor Trust Rules Definition | Investopedia
Guidelines that state a trust is considered to be a grantor trust if the grantor has a reversionary interest greater than 5% of the trust assets (at the time the transfer ...
- Grantor Trust Rules
Aug 14, 2012 ... A "grantor trust" is trust over which grantor retains direct or indirect control to such extent he is treated as owner of trust. Income of a grantor trust ...
- Use of Grantor Trusts in Estate Planning
Creating a Grantor Trust. • A trust becomes a grantor trust by intentionally being subjected to the grantor trust rules set out in Internal Revenue Code Sections ...
- Repeal the Grantor Trust Rules - Jotwell: Trusts & Estates
Mar 14, 2012 ... Mark L. Ascher, The Grantor Trust Rules Should Be Repealed, 96 Iowa L. Rev. 885 (2011).“It is not a matter of the cure being worse than the ...
- Intentionally Defective Grantor Trusts
through 679 of the Internal Revenue Code (the “Grantor Trust Rules”). ... afoul of Grantor Trust Rules was viewed negatively in that the Grantor (the Trustor or ...
- Chapter 4 Grantor Trusts - Practising Law Institute
When the grantor trust rules apply, section 671 provides in part that: there shall ... Only the income of a trust not subject to the grantor trust rules is governed by ...
- Grantor Trusts: Income Taxation Under Subpart E | Bloomberg BNA
The grantor trust rules generally delineate those powers and interests that are ... The grantor trust rules may also be used intentionally to shift the incidence of ...
- CPA Journal - February 1999
If the grantor trust rules apply, the trust is generally ignored for income tax purposes, and the income tax rules relating to trusts do not apply. The grantor will be ...