Non Grantor Trusts
Learn about non-grantor trusts and their unique tax treatment as separate entities. Discover how these trusts differ from grantor trusts in estate planning.
What are the main characteristics of non-grantor trusts?
Non-grantor trusts are treated as separate tax entities from the grantor, meaning the trust itself pays taxes on income it generates rather than passing that income through to the grantor. This structure creates different tax implications compared to grantor trusts, where the grantor remains responsible for trust income taxes. Understanding these distinctions can help families explore different estate planning structures and their potential tax consequences.
