Tax Reimbursement Clauses: The Good, The Bad and the Ugly

Speakers: Jonathan G. Blattmachr and Martin M. Shenkman What are tax reimbursement clauses in trusts? What are and what the benefit of having them included in a grantor trust? How might they help you financially if you are creating or have a grantor irrevocable trust? What are some of the risks and issues of using tax reimbursement clauses? How might they undermine your trust and estate plan? What does Rev. Rul. 2004-64 suggest about this mechanism? What are the pros and cons (some practitioners do not use them ever; some say the must be used in ever grantor irrevocable trust) of including tax reimbursement clauses? How does the related topic of turning off grantor trust status relate to the use or non-use of a tax reimbursement clause? Handouts One Slide Per Page