Grantor Revocable Trusts vs Non-Grantor Irrevocable Trusts
Grantor trusts can be either revocable or irrevocable trusts. With intentionally defective grantor trusts, the grantor must pay taxes on any income, but the assets are not part of the owner's estate.
All "revocable trusts" are by definition grantor trusts. An "irrevocable trust" can be treated as a grantor trust if any of the grantor trust definitions contained in Internal Code §§ 671, 673, 674, 675, 676, or 677 are met.
In a Non-Grantor Trust, the grantor, that is conveying property into the trust, relinquishes any interests they have in the property.
In a Grantor Trust - the grantor retains the interest they have in the property.
What ends up happening is in the structure of the trust itself, when you have a Non-Grantor Irrevocable Trust, irrevocable means that the grantor cannot change their mind about conveying property into the trust once it has been conveyed. Those types of trusts end up creating an entity that is an entity under themselves.
In Grantor Revocable Based Trusts - those create an entity that can be changed and the court sees it as no different than the grantor owning the property and in benefiting from the property as though they own it.
In a Non-Grantor Irrevocable Trust - that trust actually owns the property. When the grantor dies, nothing changes, the trust still owns the property, and the benefits continue on into the future.
This is how you avoid probate.
-
1:48
wynnfaam
1 year agoRevocable vs Irrevocable Trusts
111 -
15:11
RogerLeads2020
2 months agoTrusts and real Home Ownership - Get your Real Grant deed set Up - 3-20-24
24 -
3:02
FINANCIAL ISSUES
1 year agoRevocable Trust vs. Will
34 -
4:03
We The People - Constitutional Conventions
2 months agoUNALIENABLE RIGHTS VS INALIENABLE RIGHTS
9334 -
3:58
MoneyMaximized
9 months agoMastering Trusts in Estate planning
5 -
1:31
Sam4289
10 months agoTrust & Estate Quick Tip #7 – Revocable Trusts Does Not Provide Protection Against Creditors
77 -
7:48
TruthTornado
1 year agoWhat is a Trust Indenture and Breach of Trust?
2002 -
46:40
KBICTALK
8 months agoHOW TO PROTECT YOUR MONEY WITH AN IRREVOCABLE TRUST
89 -
16:29
JoeLustica
1 year ago $0.18 earnedThe role of a Trustee
1K4 -
2:56
MoneyMaximized
9 months agoMastering Trusts in Estate planning
11