You can’t eat your cake and have it, too!
We’ve all said it many times and in every case we were talking about more than just desserts. Layered within the phrase is the more subtle and intended message that you can’t have it both ways; or that to get something you’ve got to give up something else.
Our conversations are peppered with idioms, those oft-used little word-packages whose literal meaning have nothing to do with what they actually communicate. For the outsider struggling to learn the language, idioms can cause more roadblocks to understanding that all the other irregularities of grammar and spelling that attend the King’s English. And it gets more confusing when an idiomatic truth proves unreliable; as in the case of grantor trusts.
These grantor/intentionally-defective/irrevocable/lay in the house that Jack built/life insurance trusts turn the idiom on its head by allowing, from at least a tax perspective, a taxpayer to have it both ways.
Consider the advantages a grantor trust can provide if all is properly done:
Let’s keep the ball rolling. While the maker is enjoying the best of both tax worlds, he or she also benefits in that:
If you want to hide a barn you shouldn’t paint it red. It’s no surprise that a planning device with this many advantages has caught the attention of the lawmakers.
If lack of familiarity with common idioms is hampering you then it’s time you pulled yourself up by your own bootstraps, put your nose to the grindstone, and began to get the lay of the land on such things. Or simply contact me with questions that come up in your casework concerning grantor trusts, at 706-354-0401 or email@example.com. When we are done you will know your noodles.
By the way, my Mother never quite got the hang of making cakes from scratch. Her marble cakes were always so hard we just took them for granite.
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