Georgia Irrevocable Trust which is a Qualifying Subchapter-S Trust

State:
Multi-State
Control #:
US-0686BG
Format:
Word; 
Rich Text
Instant download

Description

An irrevocable trust is a trust that cannot be modified or terminated without the permission of the beneficiary. In most states, a trust will be deemed irrevocable unless the grantor specifies otherwise. Once the grantor has transferred assets into the tr
Free preview
  • Preview Irrevocable Trust which is a Qualifying Subchapter-S Trust
  • Preview Irrevocable Trust which is a Qualifying Subchapter-S Trust
  • Preview Irrevocable Trust which is a Qualifying Subchapter-S Trust
  • Preview Irrevocable Trust which is a Qualifying Subchapter-S Trust
  • Preview Irrevocable Trust which is a Qualifying Subchapter-S Trust

How to fill out Irrevocable Trust Which Is A Qualifying Subchapter-S Trust?

If you desire to be thorough, download, or create legal document templates, utilize US Legal Forms, the largest assortment of legal forms available on the web.

Take advantage of the site’s user-friendly and efficient search to locate the documents you require.

A range of templates for business and personal purposes are organized by categories and states, or keywords.

Step 3. If you are not content with the type, use the Search field at the top of the page to find alternative versions of the legal form template.

Step 4. After you have identified the form you need, click the Buy now button. Choose the pricing plan that suits you and provide your details to register for an account.

  1. Utilize US Legal Forms to locate the Georgia Irrevocable Trust, a Qualifying Subchapter-S Trust, in just a few clicks.
  2. If you are currently a US Legal Forms user, Log In to your account and click the Download button to retrieve the Georgia Irrevocable Trust, which is a Qualifying Subchapter-S Trust.
  3. You can also access forms you previously downloaded in the My documents section of your account.
  4. If this is your first time using US Legal Forms, refer to the guidelines below.
  5. Step 1. Ensure you have selected the form for your appropriate city/state.
  6. Step 2. Utilize the Preview option to examine the form’s details. Don’t forget to review the summary.

Form popularity

FAQ

A trust may be "qualified" or "non-qualified," according to the IRS. A qualified plan carries certain tax benefits. To be qualified, a trust must be valid under state law and must have identifiable beneficiaries. In addition, the IRA trustee, custodian, or plan administrator must receive a copy of the trust instrument.

Background. A QSST is one of several types of trusts that are eligible to hold stock in an S corporation. Its two primary requirements are (1) there can be only one beneficiary of the trust and (2) all income must be distributed at least annually (Sec. 1361(d)(3)(B)).

Net investment income tax of a QSST 1411(a)(2)). The tax also applies to QSSTs to the extent the net investment income is retained in the trust. Although the S corporation income of a QSST is taxed to the individual income beneficiary, capital gain on the sale of the S corporation stock is taxed at the trust level.

Three commonly used types of ongoing trusts qualify as S corporation shareholders: grantor trusts, qualified subchapter S trusts (QSSTs) and electing small business trusts (ESBTs).

An irrevocable grantor trust can own S corporation stock if it meets IRS regulations. The trust must contain language stating that all the ordinary income the trust earns along with the original trust assets are owned by the trust grantor.

A Qualified Subchapter S Trust, commonly referred to as a QSST Election, or a Q-Sub election, is a Qualified Subchapter S Subsidiary Election made on behalf of a trust that retains ownership as the shareholder of an S corporation, a corporation in the United States which votes to be taxed.

The main difference between an ESBT and a QSST is that an ESBT may have multiple income beneficiaries, and the trust does not have to distribute all income. Unlike with the QSST, the trustee, rather than the beneficiary, must make the election.

Non-natural persons, or entities, include trusts, charities and corporations. A trust with individual beneficiaries will usually qualify for the exception mentioned above.

Irrevocable trusts are often set up as grantor trusts, which simply means that they are not recognized for income tax purposes (all of the income tax attributes of the trust, such as income, loss, gains, etc. is passed on to the grantor of the trust).

A qualified revocable trust (QRT) is any trust (or part of a trust) that was treated as owned by a decedent (on that decedent's date of death) by reason of a power to revoke that was exercisable by the decedent (without regard to whether the power was held by the decedent's spouse).

Trusted and secure by over 3 million people of the world’s leading companies

Georgia Irrevocable Trust which is a Qualifying Subchapter-S Trust