Search results
Results from the WOW.Com Content Network
Beneficiaries are generally close family members of the grantor, such as children or grandchildren, who are prohibited from being named beneficiaries of another estate freeze technique, the grantor-retained income trust. [clarification needed] If a grantor dies before the trust period ends, the assets in the GRAT are included in the grantor's ...
The term "grantor trust" also has a special meaning in tax law. A grantor trust is defined under the Internal Revenue Code as one in which the federal income tax consequences of the trust's investment activities are entirely the responsibility of the grantor or another individual who has unfettered power to take out all the assets. [20]
Walton v. Commissioner, 115 T.C. 589 (2000), [1] a decision of the United States Tax Court in favor of taxpayer Audrey J. Walton, "ruled that a grantor's right to receive a fixed amount for a term of years, if that right is a qualified interest within the meaning of Section 2702(b), [2] is valued for gift tax purposes under Section 7520, [3] without regard to the life expectancy of the ...
Grantor-retained annuity trusts. Life insurance trusts. Special needs trusts. ... Grantor trusts are set up so that the grantor pays taxes on income. When it comes to non-grantor trusts, who pays ...
Why you can trust us. ... 100% of your annuity payments count as ordinary income for tax purposes. Since you fund qualified annuities with pre-tax dollars, you must wait until 59 1/2 to receive ...
An annuity income rider is an optional feature of many annuities that retirees can use to provide themselves with a guaranteed minimum income for as long as they live. Income riders add cost and ...
Mitigation strategies can include making inter vivos (lifetime) transfers that are subject to lower effective tax rates than transfers at death, transferring property through insurance trusts or grantor-retained annuity trusts, making gifts to charity, transferring minority business interests, taking maximal advantage of each spouse's ...
Like any source of retirement income, annuities have their pros and cons. Understanding these can help you make an informed decision about whether an annuity is right for you. Advantages of ...