Trustor Vs Trustee: Is There Really an Issue?
Standard Living TrustsThere really isn't a trustor vs trustee issue when you are using a standard living trust, because the trustor and the trustee are almost always the same person - you.The trustor is the person who creates the trust and the trustee is the person who manages the assets of the trust or "trust fund."In a standard living trust, the trustor and the trustee need to be the same person in order to get the tax treatment offered to a "grantor trust." The IRS looks at the trustor vs trustee situation to make sure they are the same person.The IRS will "ignore" a grantor trust which has to have the same person as trustor and trustee. The trust fund won't be taxed as a trust asset. It...
