Sales to Defective Grantor Trust

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02:30 Apr 11, 2018
English to Portuguese translations [PRO]
Law/Patents - Law (general)
English term or phrase: Sales to Defective Grantor Trust
There is no more context. This is a a sophisticated estate planning strategy that can provide substantial benefits to wealthy individuals and families seeking to transfer assets from one generation to the next.

What would be the term in PTBR?
Literal translation?

Thanks for your input!
Nadja B Batdorf
United States
Local time: 09:49


Summary of answers provided
4vendas a um fundo fiduciário instituidor (concedente) defeituoso
airmailrpl
3vendas a um consórcio de concessionários inadimplente
Mario Freitas
Summary of reference entries provided
Intentionally defective grantor trust
Teresa Borges

Discussion entries: 1





  

Answers


5 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
sales to defective grantor trust
vendas a um fundo fiduciário instituidor (concedente) defeituoso


Explanation:
sales to defective grantor trust => vendas a um fundo fiduciário instituidor (concedente) defeituoso

In simple terms, a Grantor Trust is a trust in which the grantor, the creator of the trust, retains one or more powers over the trust and because of this the trust's income is taxable to the grantor.
What is a Grantor Trust? | Strauss & Malk LLP
www.straussmalk.com/illinois-law-faq/what-is-a-grantor-trus...

An IDGT ('Intentionally Defective Grantor Trust) is also an irrevocable trust that is “defective” for income tax purposes (i.e., a grantor trust) but effective for estate tax purposes. As the grantor, you would make a gift of either cash or assets to the trust; those assets are held for the benefit of your beneficiaries.Jun 27, 2016
Grantor Trust: Planning with GRATs and IDGTs: CLA Trust Company ...
https://www.claconnect.com/.../grantor-trusts-tax-and-estate...

airmailrpl
Brazil
Local time: 13:49
Works in field
Native speaker of: Native in EnglishEnglish, Native in PortuguesePortuguese
PRO pts in category: 86
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5 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
sales to defective grantor trust
vendas a um consórcio de concessionários inadimplente


Explanation:
Sugestão.

Mario Freitas
Brazil
Local time: 13:49
Specializes in field
Native speaker of: Native in PortuguesePortuguese, Native in EnglishEnglish
PRO pts in category: 323
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Reference comments


7 hrs
Reference: Intentionally defective grantor trust

Reference information:
From Wikipedia

An Intentionally defective grantor trust is sometimes used to reduce estate taxes. It works as follows:

The grantor creates the trust
The grantor transfers investment assets into the trust, but retains the power to "reacquire the trust corpus by substituting other property of equivalent value". The transfer is valid (complete) for estate tax purposes but is incomplete for income tax purposes.
The grantor pays gift tax on the transfer[1]
During the grantor's lifetime, he pays income taxes any increase in value of the assets in the trust. The trust grows, but its "value" for estate tax purposes is "frozen" at the time of the transfer. If the trust grows substantially, the increase is not subject to estate tax (which is usually at a higher rate than the grantor's marginal income tax rate).
If the assets decrease in value, the grantor can sell them (leaving the sales price in the trust, or using it to acquire other assets for the trust). He can then apply that loss to decrease the taxes he will pay on other assets that have increased in value, but the value for estate tax purposes will not decrease.[2]
https://en.wikipedia.org/wiki/Intentionally_defective_granto...

Teresa Borges
Portugal
Works in field
Native speaker of: Native in PortuguesePortuguese
PRO pts in category: 650
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