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October 20, 2020

Estate Planning Awareness Week – Update #2

For income tax purposes, a Gift DAPT is treated as a grantor trust during the grantor’s lifetime. That means that the grantor is liable for all income taxes on trust income regardless of the actual amount distributed to him or her. However, the trust agreement can allow the trustee discretion to reimburse the grantor for the income tax paid on trust income.  

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