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Table of Contents

List of Forms by Chapter

Chapter 1 — Overview of Revocable Grantor Trusts

I. Introduction

[1.1] In General

[1.2] Creation of a Trust

[1.3] Definition of Revocable Grantor Trust

[1.4] Types of Revocable Grantor Trusts

[1.5] Main Vehicle Trust

[1.6] Pourover Trust

[1.7] Payout Trust

[1.8] Special-Purposes Trust

[1.9] Not a Total Will Substitute

II. Advantages of Revocable Grantor Trust During Grantor’s Lifetime

In the Event of Disability

[1.10] Guardianship Avoidance

[1.11] Continuity of Management

Facility of Asset Management

[1.12] Coordination and Unification of Asset Management

[1.13] Ease of Modification

Flexibility To Meet Changing Circumstances

[1.14] Choice of Fiduciary

[1.15] Choice of Law of Trust

[1.16] Transfer of Administration of Trust

Estate Planning Implementation

[1.17] Gift-Giving Program

[1.18] Income Tax Deductibility of Legal Fees

[1.19] Attorney Malpractice — Limitations

[1.20] Creditors’ Claims

[1.21] Preservation of Nature of Assets

[1.22] Lifetime Tax Considerations

III. Disadvantages of Revocable Grantor Trust During Grantor’s Lifetime

Additional Costs

[1.23] Document Preparation

[1.24] Tax and Administration

[1.25] Client Attitudes

Marital Assets

[1.26] Severing Jointly Held Assets

[1.27] Inadvertent Gifts

IV. Advantages of Revocable Grantor Trust upon Grantor’s Death

Minimization of Probate

[1.28] In General

[1.29] Privacy

[1.30] Avoidance of Ancillary Probate

[1.31] Reduction of Legal Fees

[1.32] Minimization of Court Expenses

[1.33] Expeditious Distribution of Assets

[1.34] Annual Accounting and Objections by Beneficiaries

[1.35] Flexibility in Planning for Heirs

Estate Settlement Impact

[1.36] Defeating Spousal Elective Rights

[1.37] Circumvention of Charitable Gift Laws

Challenges to the Testamentary Plan

[1.38] Penalty Clauses

[1.39] Reduced Risk of Contest

[1.40] Equitable Proceeding

[1.41] Distribution of Insurance and Retirement Benefits

[1.42] Income Tax Flexibility

V. Disadvantages of Revocable Grantor Trust upon Grantor’s Death

[1.43] Tax Aspects

[1.44] A Will Still Needed

[1.45] Creditors’ Claims

[1.46] Expanded Statute of Limitations in the Event of Contest

[1.47] Environmental Liability

VI. Conclusion

[1.48] In General

[1.49] Ethical Issues

[1.50] Checklist of Advantages and Disadvantages

Chapter 2 — Determination of the Taxable Estate

Chapter 3 — Planning for Spouses and Descendants

Chapter 4 — Drafting Marital Deduction and Credit Shelter Provisions

Chapter 5 — Tax Aspects of Trust Administration

Chapter 6 — Planning for Incapacity

Chapter 7 — Spousal Elective Rights

Chapter 8 — Funding the Revocable Grantor Trust

Chapter 9 — Standard Revocable Grantor Trust Agreement

Chapter 10 — S Corporations and Illinois Revocable Grantor Trusts

Chapter 11 — Trusts by Citizens or Residents for Noncitizen Spouses (Qualified Domestic Trusts)

Authors

Adam S. Garber
Adam S. Garber
Adam S. Garber is a Partner at Levenfeld Pearlstein, LLC, in Chicago, where he focuses his practice on estate planning. He was named an Illinois Super Lawyer Rising Star in 2017, is a member of the Trust Law Committee of the Chicago Bar Association, and is a Certified Public Accountant. Mr. Garber received his B.S. with honors from the University of Illinois, his J.D. with honors from Chicago-Kent College of Law, and his LL.M. in Taxation with honors from Northwestern University School of Law.

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Revocable Grantor Trusts (ARCHIVED 2019 EDITION)

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