Sentences with phrase «grantor tax»

Another fee is grantor tax, which can be calculated as 0.1 % or $ 0.50 / $ 500, whichever is greater.

Not exact matches

For tax purposes, exchange - traded products come in one of five structures: open - end funds; unit investment trusts (UITs); grantor trusts; limited partnerships (LPs); and exchange - traded notes (ETNs).

For investors looking to simplify their taxes without K - 1s, grantor trusts and ETNs might look more appealing.

If income is attributable to U.S. sources, income tax for the trust is the responsiblity of the grantor.

The Trust is classified as a «grantor trust» for US federal income tax purposes.

• the Trust fails to qualify for treatment, or ceases to be treated, as a grantor trust for US federal income tax purposes, and the Trustee receives notice from the Sponsor that the Sponsor determines that, because of that tax treatment or change in tax treatment, termination of the Trust is advisable;

the Trust fails to qualify for treatment, or ceases to be treated, as a grantor trust for US federal income tax purposes, and the Trustee receives notice from the Sponsor that, because of that tax treatment or change in tax treatment, termination of the Trust is advisable;

While this restricts you, the grantor, from control of the trust for its duration, an irrevocable trust is very tax advantageous.

In another significant development, the Senate version of the small business tax bill will drop the provision dealing with grantor retained annuity trusts, or GRATs, and instead include provisions expanding availability of Roth accounts.

(A grantor trust is taxed differently from other trusts; all income is taxed, not to the trust, but to the person who created the trust — the «grantor» — and an irrevocable trust can not generally be changed or undone by the grantor.

The income taxes decrease the grantor's estate, and, because the taxes are on income treated as the grantor's for income tax purposes, they are not treated as gifts for Federal gift tax purposes.

A deed which conveys not only all the grantor's interests in and title to the property to the grantee, but also warrants that if the title is defective or has a «cloud» on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it) the grantee may hold the grantor liable.

Spouses and grantor trusts filing jointly can claim a 5 percent tax credit on contributions up to $ 3,840, for a maximum of $ 192 per qualified beneficiary.

The credit grantor claim to the insurance company then, sell your account to a collection agency and save money on taxes, this account has been already satisfied and you now have two items on your credit report for the same account.

These factors could include the grantor's age and / or life expectancy, state of residency, asset base, the cost basis of the asset being gifted, trust tax rates, the beneficiaries» tax rates, trust drafting and more.

The projected tax liability of the grantor's estate and the type of estate assets are the primary factors in deciding how much insurance to purchase.

For the grantor, there are a few potential tax benefits: (1) Assets placed in the trust may qualify for an income tax deduction on the estimated present value of the remainder interest that will eventually go to charity.

(2) At death, trust assets are not subject to estate taxes because they are no longer part of the grantor's taxable estate.

The AFR is useful for tax concepts such as Original Issue Discount (when issuers sell low - interest or no - interest bonds or loans at less than face value, attempting to recharacterize interest income as return of principal), various grantor trusts (e.g. GRATs), and so forth.

The assets in a charitable trust aren't part of the grantor's taxable estate so upon death of the grantor, these assets won't be subject to estate taxes

Grantor trusts are also often used for various strategies such as using intentionally defective grantor trusts with a «gift and note» concept in order to gain income and estate tax savings.

A nonresident trust that is required to file a federal return, including a grantor trust, with gross income (as defined in IRC Section 61 (a)-RRB- from Idaho sources of $ 100 or more for the current tax year

A resident trust that is required to file a federal return, including a grantor trust, with gross income (as defined in IRC Section 61 (a)-RRB- of $ 100 or more for the current tax year

The donor may claim a charitable income tax deduction for funding a grantor lead trust or a charitable gift tax deduction for funding a non-grantor lead trust.

This apparent «purely accountancy operation» had in fact fiscal consequences as, to the opinion of the Directorate - General for Taxation of the French Ministry of Economic Affairs, Finance and Industry, those grantor rights represented an unowed debt which was unjustifiably exempted from tax by being incorporated into the capital.

The Commission, however, took the view that the grantor rights should have been taxed at the same time and at a same rate as the other accounting provisions created free of tax.

Mr. Hafen's practice includes advice regarding sophisticated tax, estate, asset protection, and business planning strategies, including the preparation of documents such as wills, living trusts, durable powers of attorney, healthcare directives, asset protection trusts, irrevocable life insurance trusts, gift programs, grantor retained annuity trusts, education trusts, family limited partnerships and limited liability companies, generation - skipping transfers, charitable giving, charitable remainder trusts, private foundations, property agreements, and prenuptial and postnuptial agreements.

One particularly popular loophole is when estates use grantor retained annuity trusts (GRATs) to transfer property tax free: «The estate owner puts money into a trust designed to repay the estate the initial amount plus interest at a rate set by the Treasury, typically over two years.

The assets in a revocable trust are included in the grantor's estate, and thus can be subject to estate taxes.

Because these assets can no longer be accessed by the grantor, they typically are then exempt from estate taxes.

It is common for the law to require that a life insurance trust to be set up at least three years in advance of a grantor's death in order for the death benefit to be exempt from the estate tax.

Since the proceeds from the death benefit are excluded from the grantor's estate, multiple generations of family — children, grandchildren and great grandchildren — may benefit from the trust assets free of estate and GST tax.

If properly drafted the ILIT can, however, provide liquidity to help pay estate taxes, as well as other debts and expenses, by purchasing assets from the grantor's estate or through a loan.

An ILIT helps leverage the grantor of the trust's generation - skipping transfer (GST) tax exemption by using gifts to the trust to buy and fund a life insurance policy.

An ILIT is a very helpful tool that aids the grantor (insured) in protecting an estate from estate taxes or those potentially damaging costs of long - term care.

Often results in income tax or estate tax savings for the grantor (person giving the money or property).

Private parties use the county grantor / grantee index to first search for the property legal description and tax assessor's parcel number.