LexisNexis® Legal Newsroom
Using Grantor Trusts to Transfer Assets

By Adam J. Gottlieb In this entry, I will discuss transfers to an intentionally defective grantor trust ("IDGT"). An IDGT is a trust which provides no direct financial benefit to the transferor. It is a grantor trust under the income tax rules. A grantor trust is a legal trust under...

Morrison & Foerster LLP: Distribution of Liabilities from a Grantor Trust Likely Causes the Grantor to Recognize Gain

By Danielle T. Zaragoza, Esq. and Sonja K. Johnson, Esq. A so-called "grantor trust" is a trust that is disregarded for income tax purposes. Because the income and gratuitous transfer tax laws are not completely consistent with each other, it is possible for an irrevocable trust to be a grantor...

Low Interest Rates-Ideal for GRATS or Sales to an IDGT

By: David R. Schoenhaar, Esq.* In this environment of low Applicable Federal Rates (AFR) and §7520 rates, sophisticated techniques like a grantor retained annuity trust (GRAT) or a sale to an intentionally defective grantor trust (IDGT) should be evaluated by clients seeking to reduce the size...

Intentionally Defective Grantor Trusts Under Attack by 2013 Revenue Proposals

By: David R. Schoenhaar, Esq.* A common Estate Planning technique is the utilization of intentionally defective grantor trusts. A grantor trust is a trust in which the grantor is treated as the owner for income tax purposes and when the grantor dies, the trust is often drafted in a manner to avoid...

Intentionally Defective Grantor Trusts on the Chopping Block?

Persons who have relied upon certain trusts as a means of limiting estate taxes upon their death might have cause for concern regarding an Obama administration budget proposal for 2013. While the current proposal remains very broad, and thus might be subject to change down the road, as it stands now...

Historic Estate & Gift Tax Savings Opportunities Almost Gone

By: David R. Schoenhaar, Esq.* We are half way through 2012 and the generous tax legislation that went into effect on January 1, 2011, is scheduled to sunset on December 31, 2012, if Congress fails to act. Those who can participate in significant gift planning must act now if they plan to take...

Historic Estate & Gift Tax Savings Opportunities Almost Gone

By: David R. Schoenhaar, Esq.* We are half way through 2012 and the generous tax legislation that went into effect on January 1, 2011, is scheduled to sunset on December 31, 2012, if Congress fails to act. Those who can participate in significant gift planning must act now if they plan to take advantage...