G.59 Types, features, and taxation of trusts Flashcards

A trust that can be altered or terminated by the grantor during their lifetime, with assets remaining part of the taxable estate.

A trust that cannot be changed or revoked by the grantor once established, removing assets from the taxable estate.

A trust created through a will and activated upon the grantor’s death to manage and distribute assets according to the will’s instructions.

A trust established during the grantor’s lifetime to manage assets before and after death, potentially avoiding probate.

A trust in which the grantor retains certain powers or benefits, causing the trust’s income to be taxable to the grantor.

An estate planning trust designed to utilize the estate tax exemption of a deceased spouse while providing for the surviving spouse.

A trust allowing a grantor to provide income to a surviving spouse while preserving the principal for designated heirs, commonly used in second marriages.

A trust that provides income to beneficiaries for a specified term, with remaining assets donated to a charity, offering tax benefits.

A trust that restricts a beneficiary’s access to principal and income to protect assets from creditors or poor financial management.

An irrevocable trust in which the grantor retains an annuity payment for a set term, after which remaining assets pass to beneficiaries with potential tax advantages.