Planning with Intentionally Defective Grantor Trusts (Currently Unavailable)

Author: Steven G. Siegel

Intentionally Defective Grantor Trusts – IDGTs – are a popular estate planning technique that can potentially benefit your clients. Explore how these trusts work and get tips on how to best put them to work for your clients.

This On-demand course provides a practical, useful and updated examination of IDGTs from noted estate planner, author and educator, Steven G. Siegel, J.D., LL.M. This insightful program discusses how IDGTs work, how they are created, and the planning situations where they are best used. Siegel, an outstanding speaker and presenter, will provide plain-English explanations and helpful tips on this important topic, so you can understand IDGTs and advise your clients about them with confidence.

NOTE: IDGTs are under attack by both proposed administration budgets and IRS challenges, so understanding this planning opportunity and taking advantage of it while it is available is critical to your clients who would benefit from them.

Publication Date: June 2017

Designed For
This course is essential for Tax Return Preparers, CPAs, Enrolled Agents, Tax Attorneys and Other Professionals who advise clients on tax, retirement and estate planning, and other wealth management matters. All accountants who advise clients on estate and trust planning and administration and other wealth management matters will benefit from this on-demand course.

Topics Covered

• What is an Intentionally Defective Grantor Trust?
• Understanding the Grantor Trust Rules
• Creating and Using IDGTs
• Advantages of IDGTs
• Installment Sales of Property to IDGTs
• Using IDGTs in Family Business Succession Planning
• Comparing the Use of the IDGT to the Use of a GRAT

Learning Objectives

• 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

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge of federal wealth transfer taxes.

Advance Preparation
None