- Legal vs tax
- May be grantor or non-grantor depending on powers retained. That split changes who pays the tax.
- Liability
- Possible separation from the grantor only if the trust is properly formed, funded, and not a sham. Never a DIY privacy product.
- Default federal tax
- non grantor trust
- Other federal options
- grantor trust
- Formation / maintenance
- Counsel-drafted instrument, gift/valuation work, trustee independence facts.
- Public-record notes
- Still not a license to hide assets from lawful creditors, tax authorities, or court process.
- Succession
- Core use. Terms are hard to change.
- Investor fit
- Can complicate cap tables. Disclose early.
Disqualifiers
- Need day-to-day control of every dollar with no trustee
Professional review: attorney, cpa.