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The grantor also has the authority to amend or revoke the trust, depending on whether it is a revocable or irrevocable trust. In a revocable trust, the grantor retains control over the assets and ...
The term "grantor trust" also has a special meaning in tax law. A grantor trust is defined under the Internal Revenue Code as one in which the federal income tax consequences of the trust's investment activities are entirely the responsibility of the grantor or another individual who has unfettered power to take out all the assets. [20]
Grantor (the trust creator) can be a trustee: The grantor can act as a trustee during their lifetime, and is not forced to relinquish control of the assets placed in the trust. Cons
Upon the grantor’s death, a revocable trust becomes irrevocable and cannot be changed by the trustee or any other party. Irrevocable trusts cannot be changed easily by any party, including the ...
Grantor retained annuity trust ('GRAT'): an irrevocable trust whereby a grantor transfers asset(s), as a gift, into a trust and receives an annual payment from the trust for a period of time specified in the trust instrument. At the end of the term, the financial property is transferred (tax-free) to the named beneficiaries.
In United States trust law, an Ultra Trust is a registered trademark [1] whose intellectual property is owned by Estate Street Partners LLC. It describes a specific type of intentionally defective grantor-type irrevocable trust that includes an independent trustee, as well as a special limited power of appointment.