(c) 2008 Newsday. Reprinted by Permission
ASK THE EXPERT
KAREN E. KLEIN
The problem: I’m the trustee of an “irrevocable grantor trust” created a year ago by my father-in-law with his two daughters as beneficiaries. Circumstances have changed and we’re considering paying out the trust principal and having the beneficiaries gift the entire amount back to my father-in-law. Is this legal? What about taxes?
The expert: Bridget T. Faldetta, estate planning attorney, DePinto Law Associates, P.C.