“Thought for the Day” #692 – by Stephen R. Elville, J.D., LL.M.

March 24, 2016

A non-grantor trust is a trust that pays its own income tax at the trust level, and trust income is not reported on the grantor’s own IRS Form 1040. An example of a non-grantor trust is a testamentary trust under a will. A non-grantor trust will be identified for income tax purposes by its own separate Federal Tax Identification Number.