Sponsored By
Trusts & Estates logo

The Unexpected Half-Life of A Terminating Grantor Trust or QSSTThe Unexpected Half-Life of A Terminating Grantor Trust or QSST

Focus on preventing an inadvertent end to S corp status.

Stefanie J. Lipson, Partner

November 28, 2023

10 Min Read
last will
Kenishirotie/iStock/Thinkstock

Trust documents are often drafted to ensure that a trust, whether by its terms or through trustee reformation, qualifies as an eligible shareholder of an S corporation (S corp). A similar level of focus should be directed to the process of administering a trust or estate on the death of a grantor or beneficiary of a trust that’s an S corp shareholder to ensure that the shareholder who succeeds to ownership is and remains an eligible shareholder—thereby preventing an inadvertent termination of the corporation’s status as an S corp.1 

 

Grantor Trusts

A grantor trust under subpart E of part 1 of subchapter J of chapter 1 of the Internal Revenue Code that’s treated as owned by an individual who’s a U.S. citizen or resident, whether a revocable...

Unlock All Access Premium Subscription

Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!

Already Subscribed?

About the Author

Stefanie J. Lipson

Partner, Greenberg Glusker Fields Claman & Machtinger LLP

Stefanie J. Lipson is a partner at Greenberg Glusker Fields Claman & Machtinger LLP in Los Angeles.

You May Also Like