Divorce, SLATs and the Grantor Trust Section 677 Ghost

Divorce, SLATs and the Grantor Trust Section 677 Ghost

Time for an exorcism

Divorce is stressful enough without gratuitous tax issues, especially income tax. Imagine your client’s reaction after finally getting a divorce and then being told that he’s going to pay tax on the income or capital gains on the sale of assets that are in trust for the benefit of his ex-spouse—and there’s little, if anything he can do about it. That’s the perception many have when a spouse creates and funds an irrevocable trust for the other when they’

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