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Tax classification

Grantor trust (tax status)

A tax status: trust income is taxed to the grantor. Many revocable trusts are grantor trusts; some irrevocable trusts are too.

Legal vs tax
Grantor vs non-grantor is tax. Revocable vs irrevocable is the instrument. Do not conflate them.
Liability
Tax status does not create a liability shield.
Default federal tax
grantor trust
Other federal options
Formation / maintenance
Follows the instrument's retained powers, not a secretary-of-state filing.
Public-record notes
Irrelevant to public-record ranking by itself.
Succession
Depends on the underlying trust.
Investor fit
Grantor-trust founder vehicles are common; document them.

Disqualifiers

  • Assuming irrevocable always means non-grantor

Professional review: cpa, attorney.

Related: revocable-trustirrevocable-trustnon-grantor-trust