Grantor Trusts Flashcards
1
Q
Which of the following is key to defining a grantors trust?
A Revocable
B Grantor retains income interest
C Grantor maintains remainderman interest
D Grantor retains any financial interest
A
D. If the grantor retains any kind of financial interest, then it is a grantors trust.
Grantor trust are often revocable, but not always.
2
Q
What happens to all grantor trusts upon the death of the grantor?
A
The trust becomes irrevocable. No exceptions.
