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View Diary: Ryan's latest whopper: Oops, I 'overlooked' 20% of my income (Updated) (301 comments)

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  •  it shouldn't be a grantor trust, (0+ / 0-)

    since the grantor has passed away, rendering it a taxable entity (unless its a rare bird where the CPA took the position that Ryan's wife's crummey power made it defective to her)

    •  And it would be a rare CPA indeed (1+ / 0-)
      Recommended by:

      who would recognize that the lapse of a right to exercise a "Crummey" power (jargon for right of withdrawal over a portion of a contribution to a trust designed to make that portion qualify as a present interest for annual exclusion treatment under federal gift tax law) in excess of the "5 and 5" amount (don't ask) would cause the power holder to become the "grantor" of that amount for federal income tax purposes.  As I said above, this stuff can get complicated.

    •  That's not what would make it a grantor trust (0+ / 0-)

      For example, I have seen trusts that distribute the corpus when the beneficiary reaches a certain age--and then the settlor lives past that age, so the trust is a grantor trust upon the settlor's death.

      "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

      by Old Left Good Left on Sat Sep 22, 2012 at 06:17:45 PM PDT

      [ Parent ]

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