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Domestic Non Grantor Trust | Ultra Trust | Sale Agreement | Engineered Capital Gains Transactions | SAM/SAL | Charitable Remainder Trust | Charitable Lead Trust

DOMESTIC NON GRANTOR TRUST

USE - Capital Gains Delay or Deferral

This is a trust that we use to achieve true step up basis for an asset. It is called a Non Grantor Trust for two reasons:

  1. The trust for income tax purposes is treated as a true irrevocable trust. This means that any profit it generates in a given taxable year is taxed at the maximum rate at a very low threshold. Hence, when using this type of trust we normally add some other vehicle that we will use to bleed the profit out of the Domestic Non Grantor Trust into a more acceptable tax paying entity.
  2. The grantor of this trust may not be the persons contributing the appreciated asset.

This trust requires an independent trustee. The client selects the trustees and the trust beneficiaries.

Click here to view chart of Domestic Non Grantor Trust.

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