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Questions and Answers
According to the Treasury Regulation, who is considered the grantor of a trust?
According to the Treasury Regulation, who is considered the grantor of a trust?
- The beneficiary who will receive distributions from the trust
- Only the person who initially established and funded the trust
- Any person who creates the trust or makes a gratuitous transfer of property to the trust (correct)
- The trustee or administrator appointed to manage the trust assets
In the case of a trust created with assets of a legally incapacitated person, who is considered the grantor?
In the case of a trust created with assets of a legally incapacitated person, who is considered the grantor?
- The trustee appointed to manage the trust assets
- The legally incapacitated person themselves (correct)
- The person who initiated the legal proceedings
- The court-appointed guardian or conservator
If a person exercises a general power of appointment over a trust in favor of a second trust, who is treated as the grantor of the second trust?
If a person exercises a general power of appointment over a trust in favor of a second trust, who is treated as the grantor of the second trust?
- The person who exercised the power of appointment (correct)
- The trustee of the second trust
- The beneficiary of the second trust
- The grantor of the original trust
In community property states, who is typically considered the grantor of a dual grantor trust?
In community property states, who is typically considered the grantor of a dual grantor trust?
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What happens when the grantor of a trust makes a gratuitous transfer to a second trust?
What happens when the grantor of a trust makes a gratuitous transfer to a second trust?
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