How it works
The grantor transfers assets and usually gives up direct control. Depending on its terms and jurisdiction, the trust may be a separate taxpayer, and assets may be excluded from the grantor's estate.
Common uses
- — Estate tax planning
- — Long-term wealth transfer
- — Holding life insurance
Key considerations
- — Loss of flexibility and control
- — Possible gift tax reporting on funding
- — Modification may require court approval, decanting, or consent of parties
Educational content only. Not legal, tax, or investment advice. Trust law differs by jurisdiction. Consult qualified professionals before acting.
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