CFP

By Investopedia AAA

Income Taxation Of Trusts And Estates - Grantor / Non-Grantor Trusts

Grantor/Non-Grantor Trusts

Grantor Trust:

  • 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.
Non-Grantor Trust:

  • 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.

"Testamentary Trust" A trust established in the trustor's will.

Simple / Complex Trusts

You May Also Like

Related Articles
  1. Technical Indicators

    Strategies To Trade Volatility Effectively ...

  2. Fundamental Analysis

    How Investment Risk Is Quantified

  3. Trading Strategies

    Rules and Strategies For Profitable ...

  4. Fundamental Analysis

    How To Manage Portfolio Risk

  5. Trading Strategies

    Enter Trades Ahead Of The Emotional ...

Trading Center