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<font face="Times New Roman, Times, serif">I believe the trust
officer is correct -- the trusts are grantor trusts with the minor
as the grantor.<br>
Revenue Ruling 83-25, </font><font face="Times New Roman, Times,
serif"><span style="font-size:12.0pt;mso-bidi-font-size:10.0pt">1983-1
C.B. 116.<br>
search at <a class="moz-txt-link-freetext" href="http://www.legalbitstream.com/irs_materials.asp?pl=i2">http://www.legalbitstream.com/irs_materials.asp?pl=i2</a>
for 83-25<br>
<br>
This link may or may not get you there:<br>
</span><a class="moz-txt-link-freetext" href="http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irl8201/2/doc">http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irl8201/2/doc</a><br>
<br>
Doug Schafer, in Tacoma<br>
</font><br>
<div class="moz-cite-prefix">On 9/20/2016 12:36 PM, Kate Szurek
wrote:<br>
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<p class="MsoNormal"><span style="font-size:12.0pt">If I can,
I’ll post this question to the tax section’s listserv, but
perhaps I can get help from this list . . . which is nearly
always so very helpful (and absolutely always a tremendous
resource)!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">We helped a
number of families to create settlement trusts for the minor
beneficiaries of parents killed in a local explosion
(settlement of tort claims). My question relates to
taxation of the income generated by the settlement trusts.
The CPA for one of the trusts is concerned that trust income
must be taxed at the compressed rates for trusts, and uses
Form 1120-SF and instructions to prove that point. One
trust officer says that, because the trusts are grantor
trusts, the income is taxed to the minor beneficiaries. I
would like a cite to the IRC or regs which resolves the
question.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Any help
will be much appreciated!!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Kate<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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Roman","serif";color:#1F497D"><img
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<p class="MsoNormal"><b><i><span
style="font-size:13.5pt;font-family:"Cataneo
BT","serif";color:blue">Kate Szurek</span></i></b><span
style="font-size:12.0pt;font-family:"Times New
Roman","serif";color:black">, J.D., LL.M.<o:p></o:p></span></p>
<p class="MsoNormal"><a moz-do-not-send="true"
href="mailto:kate@skagitlaw.com"><span
style="font-size:12.0pt;font-family:"Times New
Roman","serif";color:blue">kate@skagitlaw.com</span></a><span
style="font-size:12.0pt;font-family:"Times New
Roman","serif";color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Times New
Roman","serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><i><span
style="font-size:14.0pt;font-family:"Times New
Roman","serif";color:#1F497D">Skagit Law
Group, PLLC<o:p></o:p></span></i></b></p>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Times New
Roman","serif";color:#1F497D">P.O. Box 336 /
227 Freeway Drive, Suite B<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Times New
Roman","serif";color:#1F497D">Mount Vernon,
WA 98273<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Times New
Roman","serif";color:#1F497D">360.336.1000<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Times New
Roman","serif";color:#1F497D">360.336.6690
(fax)<o:p></o:p></span></p>
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href="http://www.skagitlaw.com/"><span
style="font-size:10.0pt;font-family:"Arial","sans-serif";color:blue">http://www.skagitlaw.com</span></a><span
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