How Does a Grantor Trust Work? T. Rodriquez
Answer. A Grantor Trust is a trust in which the person establishing the trust retains enough “ownership rights” or “incidents of ownership” that the person is treated by the IRS as the owner of the trust assets for tax purposes. The right to revoke the trust is sufficient to make the trust a grantor trust.
A living revocable trust is a type of Grantor trust. It is used in estate planning to avoid probate, ...Continue Reading →