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For Federal income tax purposes in the United States, there are several kinds of trusts: grantor trusts whose tax consequences flow directly to the settlor's Form 1040 (U.S. Individual Income Tax Return) and state return, simple trusts in which all the income created must be distributed to one or more beneficiaries and is therefore taxed to the ...
Trusts are a useful tool for financial and estate planning, allowing a family to set assets aside to be passed on when someone dies. ... Continue reading → The post Trustor vs. Trustee: What’s ...
Settlor(s): This is the person (or persons) who creates the trust. Grantor(s) is a common synonym. Terms of the Trust means the settlor's wishes expressed in the Trust Instrument. Trust deed: A trust deed is a legal document that defines the trust such as the trustee, beneficiaries, settlor and appointer, and the terms and conditions of the ...
In trust law, a settlor is a person who settles (i.e. gives into trust) their property for the benefit of the beneficiary. In some legal systems, a settlor is also referred to as a trustor, or occasionally, a grantor or donor. [a] Where the trust is a testamentary trust, the settlor is usually referred to as the testator.
Grantor (the trust creator) can be a trustee: The grantor can act as a trustee during their lifetime, and is not forced to relinquish control of the assets placed in the trust. Cons.
Grantor trusts are set up so that the grantor pays taxes on income. When it comes to non-grantor trusts, who pays taxes will depend on how the trust was set up. Trust accounting rules can be ...
A fiduciary trust is a fiduciary relationship in which a trustee holds the title to assets for the beneficiary. The trust's creator is called the grantor and a fiduciary trust is structured under trust law .
Trustees play a vital role in the management and direction of revocable trusts. However, sometimes trustees need to be removed and replaced. While some trusts can be easily amended to change ...