What Is a Non-Grantor Trust?
A Non-Grantor Trust is an estate-planning tool that separates the trust’s assets from the grantor for income tax purposes. Unlike a grantor trust, the grantor is not considered the owner of the trust’s income or assets. The trust itself is treated as a separate taxpayer, providing opportunities for tax planning and asset management while allowing the grantor to designate beneficiaries and control distributions.
Non-grantor trusts are often used to protect wealth, manage complex estates, and plan for future generations. When structured properly, they can help families achieve long-term financial and legacy goals while taking advantage of favorable tax rules and trust laws.
Key Considerations
- Irrevocability: Assets generally cannot be reclaimed once the trust is funded.
- Tax complexity: The trust is a separate taxpayer and requires careful income tax planning.
- Asset selection & distributions: Funding and distribution decisions should be coordinated with legal and tax advisors.
- State laws: The state where the trust is established affects both asset protection and income taxation.
Working with experienced legal, tax, and trust professionals is essential to ensure the trust meets your family’s goals.
Why Choose Nevada Trust Company®?
At Nevada Trust Company®, our team has extensive experience establishing and administering non-grantor trusts. We stay current on tax laws and trust regulations to provide clear, thoughtful guidance. We can also connect you with trusted attorneys and tax professionals to help determine the best trust structure for your needs.
For more information about non-grantor trusts or other trust-related questions, please complete our contact form, and a member of our team will be in touch shortly.
