Page 183 - Other Income for Individuals

Grantor trust

1  Income earned by a grantor trust is
taxable to the grantor, not the
2 beneficiary, if the grantor keeps

certain control over the trust. (The

grantor is the one who transferred
property to the trust.)
 This rule applies if the property (or
4 income from the property) put into
the trust will or may revert (be
returned) to the grantor or the
3  Generally, a trust is a grantor trust if
grantor's spouse.

the grantor has a reversionary

interest valued (at the date of
transfer) at more than 5% of the
value of the transferred property.

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