Planning with Intentionally Defective Grantor Trusts
Authored by Steven G. Siegel ;J.D. ;LL.M. (Taxation)
About this Course
After completing this course, you should be able to: Identify what Intentionally Defective Grantor Trusts (IDGT) are; Recognize how to create and effectively use IDGTs; Identify planning opportunities where IDGTs could benefit clients; Differentiate the powers relating to the grantor's spouse that would likely be challenged by the IRS; Recognize the purpose of paying seed money to an intentionally defective grantor trust; Identify why a grantor is not considered to have retained an interest in the IDGT; Describe the advantage of selling assets to an IDGT; Differentiate when a GRAT may be preferable to an IDGT; Recognize attributes of an IDGT; Describe what the power of substitution cannot exist without
Identify when a gift tax return must be filed; Recognize when a grantor risks paying tax on the appreciation of property sold to the IDGT; Describe why trust property is generally not included in the grantor's estate; Identify when a grantor could still receive money from an IDGT without estate tax inclusion; Recognize when an IDGT is not reportable on Form 706; Differentiate when gift tax can be avoided for a GRAT; Recognize when an installment sale to an IDGT is likely to be included in the grantor's estate; Identify when income tax is not paid when the grantor sells property to an IDGT; Differentiate disadvantages of a defective life insurance trust.