5 Questions
According to the Treasury Regulation, who is considered the grantor of a trust?
Any person who creates the trust or makes a gratuitous transfer of property to the trust
In the case of a trust created with assets of a legally incapacitated person, who is considered the grantor?
The legally incapacitated person themselves
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
In community property states, who is typically considered the grantor of a dual grantor trust?
Both spouses are considered grantors
What happens when the grantor of a trust makes a gratuitous transfer to a second trust?
The grantor is considered the grantor of both trusts
Learn about the definition and special situations surrounding the grantor in trusts, as per Treas.Reg. 1.671-2(e)(1). Explore scenarios where the grantor of one trust is considered the grantor of a second trust. Understand how grants are made to trusts, especially in unique situations like trusts created for legally incapacitated individuals.
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