A grantor trust is a trust in which the creator of the trust (known as the grantor) retains authority over the trust, which makes the trust's income taxable to the person who set it up.
The primary advantage is that it moves assets out of your client's estate, although they are still responsible for the income tax the trust generates. It can also under certain circumstances keep an estate out of probate.
Here are some of the key facts you should know about grantor trusts.
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