Submitted By: someone
Answered: September 11, 2017 11:25 pm

I have a grantor trust. What type of trust does it become when I die?

When the grantor of a grantor (living) trust dies, the trust becomes irrevocable. This means that any income earned by the trust after the date of death is reported by the trust on Form 1041. Likely the trust will need to obtain an employer identification number (EIN) but the grantor trust probably was using the grantor’s Social Security number.

advertisement
Tax Glossary

Capital expenses

Costs that are not currently deductible and that are added to the basis of property. A capital expense generally increases the value of property. When added to depreciable property, the cost is deductible over the life of the asset.

More terms