During the life of a trust, its tax status may change from grantor to non-grantor, or vice versa. This may be deliberate (a powerholder relinquishes a power that caused the trust to be a grantor trust), unintentional (a change in trustee) or even unnoticed (a beneficiary attains a certain age). Of course, a trust also will lose grantor status due to the death of the grantor, but that is not our focus here. Whatever the cause of the change in grantor status, there may be unexpected income ...

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