Grantor trust

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Grantor trust

A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee under a custodial or trust agreement.

Grantor Trust

A trust where the grantor retains usufruct of the assets in the trust. That is, the grantor may continue to use the assets she has placed into the trust even after ceding technical ownership. A grantor trust is usually considered part of the grantor's estate when the grantor dies and, as such, can be subject to the estate tax.

Grantor trust.

An exchange traded fund (ETF) may be structured as a grantor trust. Such a trust holds a fixed portfolio of assets and issues shares based on the value of those assets.

Shares in grantor trust ETFs are traded on the stock market throughout the day as other ETFs are. But unlike ETFs that are structured as investment company funds or unit investment trusts (UITs), grantor trusts aren't securities, don't track an index, and aren't rebalanced from time to time.

Grantor trusts may own commodities -- such as gold or a currency -- or a portfolio of securities.

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Atlantic Trust offers a number of resources concerning estate planning strategies that involve grantor trusts, as well as other types of trusts.
Revocable trusts are probably the most common type of trust, and they are all grantor trusts by virtue of that retained power.
Some companies, however, use an alternative method to create a grantor trust of the corporate plan sponsor, which invests in shares of company stock.
The second explores the advantages and disadvantages of the three most frequently used types of trusts that qualify as S shareholders and why grantor trusts are often the preferred trust type for holding S corporation stock.
Another significant advantage of a grantor trust can be that the grantor pays the income tax on the trust's income.
When a trust qualifies as a grantor trust for income tax purposes, all of the trust's income is taxed to the grantor (i.
A CLAT set up during the grantor's life can be established as either a grantor trust (grantor CLAT) or a nongrantor trust (nongrantor CLAT).
Attendees will learn why a transaction treated as a sale for adequate consideration for gift and estate tax purposes is not a sale for the income tax, and the income tax consequences when the grantor trust sale becomes an income tax realization event, either while the grantor is alive or upon the grantor's death.
Hesch, Deferred Payment Sales to Grantor Trusts, GRATs and Net Gifts: Income and Transfer Tax Elements, 24 Tax MgMT.
The general rule is that all grantor trusts must file a Form 1041, which contains only the trust's name, address, and tax identification number (TIN) (see Regs.
The income tax issues relating to estate planning techniques using grantor trusts are complex because the separate tax regimes have inevitable overlap.