Clifford trust

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Noun1.Clifford trust - a trust established to shift the income to someone who is taxed at a lower rate than the grantor for a period of 10 years or more
trust - something (as property) held by one party (the trustee) for the benefit of another (the beneficiary); "he is the beneficiary of a generous trust set up by his father"
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524 (1965)], a "Clifford trust" document contained a provision giving the grantors the power to appoint a successor trustee that could have resulted in the trust income being taxable to the grantors.
An example of an incomplete transfer is the old Clifford Trust. Property was placed in trust for a limited period of time, after which ownership reverted to the original donor.
In 1986, Congress effectively eliminated the use of these "Clifford Trusts." The EDT can restore the income tax benefits of a Clifford Trust.