Income Taxation Of Trusts And Estates - Grantor / Non-Grantor Trusts
- Not considered a separate entity.
- Grantor retains certain powers or ownership interests.
- Income, deductions and credits are reported on the grantor's individual tax return.
- Trust is treated as a taxable entity.
- Assets treated as being owned by the trust.
- Trust is responsible for the tax consequences of income, deductions and credits.
- Separate tax return is filed on behalf of the trust.
"Inter-Vivos Trust" – A trust created during the trustor's lifetime.Simple / Complex Trusts
"Testamentary Trust" – A trust established in the trustor's will.