Intentionally Defective Grantor Trusts
1 hour 30 minutes
Learn how to effectively plan with intentionally defective grantor trusts and know the tax issues related to them.
Intentionally, defective grantor trusts are a common topic of discussion among estate planners and are often promoted as an essential estate planning technique. For all their popularity, it can be difficult to understand why and how grantor trusts are created, not to mention why they are considered defective. This material will bring some clarity to the topic of grantor trusts and the reasons they form a foundation of many estate plans. Learn what triggers grantor trust status, why it might be to a client’s advantage to do so, and when and how to avoid grantor trust status. This topic will also offer a brief history of grantor trusts, and an explanation of how the misnomer, defective, came to apply, along with some insight on possible changes to the rules regarding grantor trusts in the future.
• You will be able to define an intentionally defective grantor trust.
• You will be able to identify the powers and trust attributes that trigger grantor trust status.
• You will be able to recognize potential triggers to avoid when grantor trust status is not desired
• You will be able to explain the advantages of grantor trusts and the reasons they are used in planning.