In estate planning, the term “grantor” is most often used with regards to trusts. They are also sometimes referred to as the “trustor” or “settlor.” If you have more than one person creating and transferring property to a trust (typically spouses or domestic partners), then they are co-grantors.
Can husband set up trust without wife?
Yes you can set up a trust independent of your husband. You could fund the trust with your personal property now and/or designate any community property that is yours at the time of your death to pour over into the trust.
Are trusts marital property?
Generally, trusts are considered the separate property of the beneficiary spouse and the assets in a trust are not subject to equitable distribution unless they contain marital property. Putting marital assets into a trust does not make those assets separate property.
Can a spouse circumvent the grantor trust rules?
For the purpose of the grantor trust rules, the grantor of a trust is treated as owning any powers or interests held by his or her spouse. Accordingly, a grantor cannot circumvent the grantor trust rules by having prohibited powers or interests held by the grantor’s spouse.
Can a married couple create a joint trust?
Typically, when a married couple utilizes a Revocable Living Trust based estate plan, each spouse creates and funds his or her own separate Revocable Living Trust. This results in two trusts. However, in the right circumstances, a married couple may be better served by creating a single Joint Trust.
When is a grantor treated as an owner of a trust?
General Rule. IRC §674(a) sets forth the general rule that a grantor is treated as the owner of a trust and taxed on its income if the grantor or a non-adverse party (or both) have the power to affect the beneficial enjoyment of the trust corpus or income without the approval or consent of an adverse party.
When to create a revocable trust with two spouses?
When two people get married and start acquiring assets as a married couple, it is fairly common for the spouses to create a single revocable trust together and designate themselves as co-trustees while they are still alive.
