Month: February 2020

There is a trust defined by Code Sections 671-679 referred to as Grantor trust. A transfer to an irrevocable trust can be treated simultaneously as both (i) a completed transfer for estate and gift purposes and (ii) an incomplete transfer for income tax purposes. Therefore, it is possible to structure an irrevocable trust so that…

A residence trust is used to transfer a grantor’s residence into a trust in order to exclude any future appreciation of the residence from the grantor’s estate. These personal residence trusts (“PRTs”) are irrevocable and split interest in character. In essence, the transfer of the residence is a complete gift, while at the same time…

If you are unsure about what a trust is or the basics please refer to our earlier blog here. In order for a trust to be valid there must be property transferred to that trust. There are special considerations to take into account such as property taxes and due-on-sale clauses. Under Revenue and Taxation Code…