Grantor Trusts and Income Tax Reporting Requirements: A Primer
Jonathan G. Blattmachr and Bridget J. Crawford
Atrust is a “grantor trust” for income tax purposes to the extent that, under Code §§ 671–679, the trust’s income, deductioons and credits against tax are attributed to its grantor or its beneficiarry A trust may be a grantor trust in its entirety or only in part and may be a grantor trust with respect to one or more taxpayers. Historically, the grantor trust rules were designed to inhibit taxpayers in high tax brackets from shifting income to trusts in lower tax brackets. In fact, for many...