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What is a grantor trust in Illinois?
A Grantor Trust is a trust whose existence is ignored for U.S. and Illinois income tax purposes. All of the property and income is treated as belonging to the grantor. A Grantor Trust does not file the federal Form 1041 or Form IL-1041, Fiduciary Income and Replacement Tax Return.
Where can I get help with trust law in Illinois?
If you have additional questions or concerns regarding Illinois trust law, contact the experienced Illinois estate planning attorneys at Hedeker Law, Ltd. by calling (847) 913-5415 to schedule an appointment. Dean Hedeker is a leading Chicago-area authority on estate and tax planning, business law and investments.
Can I modify an irrevocable living trust in Illinois?
If you are the Trustee or beneficiary of an irrevocable living trust in Illinois and you need a term clarified or modified, wish to provide the Trustee with additional powers or remove the Trustee, or modify another term of the trust, you may be able to do so without the need for judicial approval.
What is the difference between a grantor and trustee?
The trustee is the person who is responsible for managing and disbursing the property owned by the trust for the benefit of the beneficiaries. The grantor may name himself or herself as both the initial trustee and beneficiary.
What is a grantgrantor Trust and why are they important?
Grantor Trusts are a valuable estate planning tool, with revocable trusts being by far the most common type, and can offer significant possibilities for estate or gift tax savings. Clients should consider the importance of these trusts in their estate plans.
Does a grantor trust file a 1041 tax return?
All of the property and income is treated as belonging to the grantor. A Grantor Trust does not file the federal Form 1041 or Form IL-1041, Fiduciary Income and Replacement Tax Return. Instead, the grantor reports all of the income on his or her federal Form 1040 and Form IL-1040, Individual Income Tax Return.
What are a grantor’s responsibilities as a trustee?
In these situations, the grantor’s only responsibility as trustee is to manage the trust assets for his or her own benefit. However, the grantor will also use the trust document to name successor trustees who will act in order if the current trustee becomes unable or unwilling to act.