Grantor Trusts Rules - What could change in 2025?

This podcast episode discusses potential changes to the grantor trust rules that could impact estate planning. Grantor trusts allow the grantor to retain certain powers over the trust, which makes the grantor responsible for paying the income taxes on trust assets. However, if properly structured, assets can potentially be excluded from the grantor’s taxable estate. Proposed changes could close loopholes that currently allow this dual benefit, such as the ability to sell assets to the trust without triggering capital gains taxes while keeping the assets outside of the estate. If these changes are enacted, grantor trusts may lose key tax advantages, prompting estate planners to reassess their use before 2025. Read  https://perma.cc/HWL9-4CZP