If you have started the estate planning process, you’ve surely heard of trusts. Trusts are legal instruments that can hold and manage assets on behalf of a specified beneficiary named by the original owner of the assets, the grantor. The assets held within the trust are then managed by a trustee named by the grantor. There are two basic types of trusts that hold assets and can be used for estate planning: grantor trusts and non-grantor trusts. While very similar, there are some distinct differences in the ways that grantor trusts and non-grantor trusts are managed and taxed. Grantor Trusts Vs. Non-Grantor Trusts The biggest difference between grantor trusts vs. non-grantor trusts is the role of the grantor. Essentially, grantor [...]