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Member
Group: Forum Members
Last Login: 7/26/2009 2:16:35 AM
Posts: 1,
Visits: 35
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| Since a GRAT by definition is a grantor trust, is there any reason to file a separate GRAT return? The GRAT owns appreciating S Corp stock. Stock was distributed this year in order to make its annuity payment to the grantor. Thank you in advance for your help.
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| No one responded to my post. Was I supposed to do something special to get replies?
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The answer to your question is 'maybe' since it depends on the technical wording of the trust agreement and the actual principal and income transactions in the trust. I would prefer to file a Form 1041 in all cases using one of the appropriate optional/alternative reporting methods described in the IRS Form 1041 Instructions and/or the PPC (Practitioners Publishing Co.) '1041 Deskbook' manual. References are noted below.
See pages 11 and 15 of the Instructions for IRS Form 1041 re: 'Grantor Trusts'.
Also see PPC's '1041 Desbook' manual - Chapter 26 for comprehensive discussions about 'Grantor Trusts' and specifically 'GRAT's, including their reporting methods under various circumstances.
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Thank you for your guidance.
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