Irrevocable Trust Question

Technical topics regarding tax preparation.
#1
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Just found out that client's mom, who passed away this year, has an Irrevocable Trust that was set up in 2017. I'm looking at the Certification of Trust document that client gave me and I can see that the trust is irrevocable, grantor was the mom, trustee is client (son), it gives a federal id#, and also states that the trust is amendable by the Trust Protector. Does the last item qualify the trust to be an IDIT (intentionally defective irrevocable trust)?

I admit I know less than I would like about trusts, even after taking quite a few continuing ed classes on them. Any feedback is appreciated!
 

#2
sjrcpa  
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What other Powers did the Protector have? Who was the Protector?
I just read a trust document yesterday where the grantor was the Protector. The Protector had a Power of Substitution and could borrow (or lend?) without adequate security. These made it a grantor trust for income tax purposes.
 

#3
Anderly  
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The real key is did the grantor retain certain powers such as:
power to revoke
power to substitute assets
retain a reversionary interest in principal or income
retain a beneficiary interest in principal or income without the approval of an adverse party

If the Protector has such powers, does the grantor have the right to change the protector?

A thorough reading of the trust document may be a first step. Good luck!
 

#4
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So it sounds like "it depends." It is not stated in the Certification of Trust who the Protector is. Did not realize that the grantor could be the Protector. Yes, I suppose I need to see the entire document to get some additional answers. Thank you both!
 

#5
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The attorney who wrote up the trust or the attorney for the estate should be a good resource.
 


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