In this in-depth look at irrevocable grantor trusts, we will review topics such as income tax reporting, potential generation-skipping transfer tax consequences, and the impact of formula adjustment clauses on gift tax compliance. We will also explore the benefits of using a CPA as the trustee of an irrevocable grantor trust and discuss several “fun facts” about these trusts.

This session will help you to:

• Differentiate between the various options to report income from an irrevocable grantor trust for income tax purposes;

• Recognize events that “turn off” grantor trust status and understand the tax impacts and the effects on income tax compliance moving forward;

• Identify formula adjustment clauses in sales or gifts to irrevocable grantor trusts and understand their impact on gift tax compliance;

Learning Objectives:

• Appreciate why generation-skipping transfer tax allocation must be carefully tracked for irrevocable grantor trusts; and

• Understand the value of CPAs as trustees of irrevocable grantor trusts.

Dennis Leonard JD

Partner, Ramsbacher Prokey Leonard LLP

Appearances