Can a grantor spouse be a beneficiary of the same trust?
The grantor spouse would be a permissible distributee under the power. The beneficiary spouse could then exercise the power via his will so as to make grantor spouse a beneficiary of the same trust or a different trust.
Can a grantor spouse be a beneficiary under a slat?
One option is to structure the SLAT so that the beneficiary spouse possesses a testamentary limited power of appointment. The grantor spouse would be a permissible distributee under the power. The beneficiary spouse could then exercise the power via his will so as to make grantor spouse a beneficiary of the same trust or a different trust.
How does power to add beneficiaries affect estate tax?
estate tax consequences. A. Power to Add Beneficiaries Under IRC ยง 674(a), a grantor will be treated as the owner of any portion of a trust if the beneficial enjoyment of the income or corpus of the trust is subject to a power of disposition exercisable by the grantor or a nonadverse party, or both, without the approval or consent of any
Who is taxed as an owner of a grantor trust?
be taxable to the grantor, or another person deemed to be. the substantial owner of the trust, for federal income tax. purposes, rather than to the trust itself or to the beneficiary. of the trust.
The grantor spouse would be a permissible distributee under the power. The beneficiary spouse could then exercise the power via his will so as to make grantor spouse a beneficiary of the same trust or a different trust.
One option is to structure the SLAT so that the beneficiary spouse possesses a testamentary limited power of appointment. The grantor spouse would be a permissible distributee under the power. The beneficiary spouse could then exercise the power via his will so as to make grantor spouse a beneficiary of the same trust or a different trust.
be taxable to the grantor, or another person deemed to be. the substantial owner of the trust, for federal income tax. purposes, rather than to the trust itself or to the beneficiary. of the trust.
What happens to the grantor spouse if the beneficiary spouse dies?
The grantor spouse can benefit indirectly through the beneficiary spouse, so long as the spouses remain on good terms and the beneficiary spouse is living. But what happens when the beneficiary spouse dies with the grantor spouse surviving?