Heyman, Use of Grantor
Trusts in Estate Planning, Green Seifter Attorneys, PPLC (Nov.
The use of an unfunded, defective ILIT will be the desired vehicle in most situations, and the grantor
will provide for annual gills to the trust to fund the payment or the insurance policies.
Or perhaps it is a small family, and the grantor
wants assets controled by family members who are also beneficiaries.
Further, if the grantor
trust is converted into a non-grantor
trust, all of the trust assets would become subject to gift taxes.
To avoid gift tax consequences, the grantor
should name as the power holder a family member or other trusted individual who is not a beneficiary of the ILIT.
If a private trust company serves as trustee, it will be a question of fact whether the grantor
holds a right triggering the grantor
When income of funded life insurance trust is taxed to grantor
If a ROP is too expensive, based on the grantor
's age and/or health, or if the trustee wants to structure the premium payments for a longer term (or for life) another exit strategy is available via a grantor
retained annuity trust.
trust is a trust in which the grantor
retains significant control over the assets in the trust or the income of the trust.
The duties of the trustee may therefore include the satisfaction of a number of tax and nontax objectives that include but are not limited to the investment, management, and protection of trust assets and compliance with the dispositive intentions of the grantor
If the grantor
is going to name specific beneficiaries during his lifetime, he should ascertain that such beneficiary(ies) is able to own a firearm.
While most DAPTs are grantor
trusts, with the ING trust technique the DAPT is purposefully structured as a nongrantor trust and, therefore, becomes its own taxpayer.