About the Course
Introduction
This webinar will discuss the tax reporting responsibilities of grantor trusts. Our panel of transfer tax experts will examine the specific reporting obligations of SLATs, GRATs, QPRTs, and other common grantor trusts for trust and estate advisers responsible for the tax reporting for these entities.
Description
Trusts typically file a Form 1041, U.S. Income Tax Return for Estates and Trusts. Grantor trusts, however, are not considered separate entities for federal income tax purposes and do not in all situations require separate reporting. Treasury Regulation 1.671-4(b) provides three optional reporting methods for grantor trusts that the trustee can utilize for income tax reporting. A one-owner trust can choose between two optional methods. A trust with multiple grantors cannot avail itself under either of the first two options, including option 1, which "is the easiest and least burdensome way to meet your obligations," as described by the IRS.
Adding to the reporting complexity is the nature of the trust itself. Spousal lifetime access trusts (SLATs), grantor retained annuity trusts (GRATs), qualified personal residence trusts (QPRTs), and other grantor trusts each have particular reporting nuances. For example, transferring a residence to a Qualified Personal Residence Trust (QPRT) requires filing a federal gift tax return. Similarly, transferring assets to a GRAT requires filing Form 709. Both QPRTs and GRATs facilitate the removal of assets expected to appreciate significantly from an estate. Any income earned by the GRAT is reported on the donor's individual income tax return, while a QPRT likely has no income to report. However, the real estate tax deduction would flow through to the grantor. Trust and estate advisers working with grantor trusts need to understand how to properly report income, expenses, and transfers of assets for these trusts.
Listen as our panel of trust and estate experts explains how to best comply with the numerous grantor trust reporting responsibilities.
Presented By
Ms. Fukuto is a Tax Partner and specializes in the Estate and Trust Tax Services for Eide Bailly, LLP, a certified public accounting firm. With over 40 years of experience, she provides tax compliance, planning and consulting services for high net worth individuals, business succession and perpetuation planning for closely-held businesses and non-profit organizations. Ms. Fukuto's expertise includes estate and trust plan review and development, implementation and administration, tax compliance and strategic consulting services that allow her to work with complex estates and family wealth transfer issues. She obtained her Bachelor of Science in Accounting from the University of Southern California and her Masters degree in Taxation from Golden Gate University. Ms. Fukuto is a member of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants. She is also the Former Chair for the Orange County Estate Planning Council and Former Chair of the State Estate Planning Interest Group for the California Society of Certified Public Accountants.
Mr. Weeg, partner with Comiter Singer, is Board Certified in both Tax Law and in Wills, Trusts and Estates and is also a licensed CPA. His law practice includes drafting wills and trusts; advising on income, gift, estate, and GST tax issues; forming business and nonprofit entities; and probating estates. Mr. Weeg is experienced in the preparation of gift and estate tax returns, representation of executors in all phases of estate administration, and creating comprehensive estate plans tailored to meet clients’ personal objectives in a tax efficient manner. He is licensed to practice law in Florida and Texas.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
Date + Time
- event
Thursday, February 12, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Grantor trusts: introduction
II. Types of grantor trusts, including SLATs, GRATs, QPRTs, and IDGTs, and use of grantor trusts in advanced estate planning
III. Income tax reporting issues, including optional reporting methods, changing reporting methods, death of the grantor, S corp eligibility, and trust decanting
IV. Gift and GST tax reporting issues
V. Examples
VI. Best practices
The panel will review these and other critical issues:
- Income and transfer tax issues applicable to grantor trusts
- Properly reporting grantor trust income and expenses under Optional Method 1 of Treasury Regulation 1.671-4(b)
- When an EIN is and is not required for a grantor trust
- Satisfying income tax reporting obligations for grantor trusts without filing Form 1041
- Examples of reporting income and expenses from specific grantor trusts to grantors
Learning Objectives
After completing this course, you will be able to:
- Identify types of grantor trusts
- Determine when a grantor trust should obtain an EIN
- Decide what additional reporting responsibilities exist for GRATs
- Ascertain why Option 1 under Treasury Regulation 1.671-4(b) is more often used than Option 2
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite:
Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of estate, gift and trust taxation including various trusts types, the unified credit, and portability.
BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
