Catalogue 2019 - 2020

LLME 845 Planning w/Grantor Trusts

Credits

2

Course Description

The Grantor Trust Rules govern when a transfer to trust is a completed transfer for income tax purposes; if the transfer is incomplete, the trust is a Grantor Trust and the trust income is taxed as though belonging to the grantor. From this simple concept flows powerful consequences. But while the concept is simple, the rules are not. This class walks through the Grantor Trust Rules more slowly and in much greater depth than possible in a one-semester class on Income Taxation of Trusts & Estates. In addition, students will learn the advantages and disadvantages of Grantor Trust Status as well as pitfalls and opportunities in drafting and trustee selection. We will compare & contrast the Grantor Trust Rules with the less complex rules for when a transfer is complete for gift & estate tax purposes, as well as Medicaid and SSI purposes, and thereby derive methods of drafting so that a transfer to trust is incomplete for some purposes while being complete for other purposes. Knowledge of the Grantor Trust Rules permits one to become truly a virtuoso draftsperson! Course grading is based on a combination of class participation, informal homework, and a take-home final examination. Prerequisites: LLME 804: Federal Income Tax of Estates & Trusts; LLME 803: Federal Wealth Transfer Taxes.

Fee