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.

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Tax Glossary

Recognized gain or loss

The amount of gain or loss to be reported on a tax return. Gain may not be recognized on certain exchanges of property.

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