How to calculate a Grantor’s Gain

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Issue: A grantor sells an appreciating asset to an irrevocable grantor trust in return for a promissory note. If the trust converts to a non-grantor trust because he grantor dies while the note is still outstanding, does the grantor realize gain?

Chart Shows: Yes, the grantor realizes gain.

For More Information: See Carol A. Cantrell, “Gain Is Realized at Death,” Trusts & Estates, Feb. 2010, p. 20.

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