Grantor trust


Also found in: Dictionary, Thesaurus.
Related to Grantor trust: Simple trust

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.

Mentioned in ?
References in periodicals archive ?
Again, this may be a fairly simple analysis because there are some straightforward Code sections that cause the entire trust to be classified as a grantor trust.
Creative ways of achieving grantor trust status
Thus, creating a grantor trust gives companies flexibility because the trust's purchase of stock, creation of loans to purchase stock and use of shares to fund employee benefits are not limited by restrictive DOL and IRS rules.
Reinvigorating aging ESOPs
1361(c)(2)(A)(i), a grantor trust may qualify as an S shareholder only if it is treated as owned by a single U.
S Corporations and disregarded entities-qualification as shareholders: S stock ownership is often diversified by using disregarded entities (DEs) in complex ownership structures. This article discusses recent strategies, rulings and pitfalls involving DEs and S shareholder eligibility
The courts have held that the business income is taxable to the taxpayer under a variety of legal concepts, including lack of economic substance (sham theory), assignment of income or that the arrangement is a grantor trust.
Not all trusts are trustworthy
When a defective trust is created with S stock, an election cannot be made to qualify the trust as a QSST, as it is deemed a grantor trust.
Twist to a QSST presents a trap
The structure provides that the Grantor Trust Certificates are supported by subordination levels determined by, amongst other quantitative and qualitative factors, DCR's analysis of the frequency and severity of loss among obligors in the pool.
DCR Rates Captec Franchise Receivable Grantor Trust Certificates, Series 2000-1
A grantor trust established to ensure payment of non-qualified deferred compensation benefits.
More than golden handcuffs
Although the grantor trust transfer in the ruling did not generate any adverse tax consequences, tax advisers should exercise considerable caution in using this strategy for Medicaid planning purposes, because the Medicaid eligibility rules can vary from state to state.
Transferring inherited IRA to grantor trust during life
In addition to individuals and estates, under current law only four types of trusts are permissible S corporation shareholders: QSSTs, grantor trusts, Internal Revenue Code section 678 trusts and voting trusts.
(Use of trusts in S corporation succession planning.)(Small Business Tax Solutions)
grantor trust will be treated like an individual who is a nonresident alien (NRA) who is not present in the U.
Tax accounting issues for foreign trusts: this two-part article describes tax accounting and reporting consequences of foreign and domestic trusts. Part I defines these trusts and discusses some advantages and disadvantages of foreign trust status
682, would be a grantor trust for income tax purposes, because the funding spouse maintains beneficial ownership of the trust assets.
Using trusts in divorce tax planning
s (AFG) 1994-A Grantor Trust asset-backed certificates, $52,800,000 7.
AutoFinance Group 1994-A $53 Million ABS Upgraded To 'AAA' By Fitch - Fitch Financial Wire -

Financial browser ?
Full browser ?