Grantor trusts are groovy. They have so many potential benefits that they are the cornerstone of many, maybe even most estate plans. Grantor trusts let you transaction business with your trust without ...

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June 21, 2023 - On March 30, 2023, the Internal Revenue Service issued Revenue Ruling 2023-2, which directly impacts a wide range of irrevocable trusts, including grantor retained annuity trusts, ...

January 13, 2023 - Irrevocable grantor trusts (also known as "intentionally defective grantor trusts" or "IDGTs") are one of the most effective and popular estate planning tools for families to shift ...

Estate tax planners have long employed intentionally defective grantor trusts to freeze the value of an asset for estate tax purposes while transferring assets out of the estate free of gift tax. An ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Trusts can be useful in estate planning for passing on assets to your heirs. A grantor retained income trust (GRIT) is a specific type of trust that allows you to transfer assets while still ...

A recent Internal Revenue Service revenue ruling has finally settled the debate over whether the assets in an irrevocable grantor trust can get a step-up in basis at the grantor’s death. Revenue ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

Even the most sophisticated estate planners may be missing the point of grantor trusts. It's a risk-free, transfer-tax free, effortless wealth transfer tool that is much more powerful than most ...

The key difference between a grantor trust and a non-grantor trust is how taxes are handled. In a grantor trust, the person who created the trust reports all trust income on their own tax return. In a ...

A trust is used to control how assets transfer after death. When the grantor dies, the trust becomes an active legal entity. The trustee follows the trust terms, manages assets, distributes property ...