Creating Intentional Grantor Trusts
Editors' Synopsis: The changes in the progressive tax structure over the past decades have greatly reduced the tax incentive to divert income from a taxpayer with substantial income to a trust or its beneficiaries. As a result, although grantor trusts were once avoided, the "intentional grantor trust" has become a viable option that can, if properly structured, produce significant tax savings for many taxpayers. In this Article, the authors present an overview of the mechanics of a grantor trust and provide guidance on how to structure an intentional grantor trust to produce tax savings and avoid the potential hazards that may arise.
Stephen R. Akers, Jonathan G. Blattmachr, and F. Ladson Boyle, Creating Intentional Grantor Trusts, 44 Real Prop. Tr. & Est. L.J. 207 (2009).