Two States Enact Grantor Trust Reimbursement Statutes
Connecticut and Florida join Delaware, New Hampshire and New York to offer trustors a way out. The benefits of creating a trust that qualifies for grantor trust status can be enticing—for both the beneficiaries and the trustor. Because grantor trust status means the trustor will be responsible for payment of the income tax liability associated with the trust during the trustor’s lifetime, the beneficiaries are relieved of the tax burden, and the growth of trust property is enhanced. The payment of the trust’s income taxes reduces the trustor’s estate, and, because the tax paymen...
Source: wealthmanagement.com