Uncommon Trusts May Result in Tax Savings

Two types of trusts that are not common knowledge to taxpayers or planners may assist in reducing taxes by the owner of the assets being determined differently for different taxes. The Intentionally Defective Grantor Trust allows a gift to be given now under gift and estate tax rules, but the donor remains the owner under income tax. The opposite result can be achieved through an Incomplete-Gift Non-Grantor Trust.

See Todd Ganos, Might These Little-Known IRS-Recognized Trusts Save You Substantial Taxes?, Forbes, Dec. 26, 2014.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.