Sidestep Gift Tax With Grantor Trusts
Aug 30, 2004 (Updated on Apr 8, 2011)
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By Grace W. Weinstein
Affluent taxpayers have long used intentionally defective grantor trusts (IDGTs) to remove assets from potentially taxable estates. However, there was always the potential that grantors could be running afoul of the gift tax. A recent IRS ruling clarified the gift and estate tax implications, which could lead to renewed interest in these wealth-transfer instruments. Get up to speed on IDGTs and how they could benefit your client.