If this technique remains viable in 2021, it is still one of the most powerful planning techniques to achieve significant tax savings for a wealthy taxpayer. The areas of discussion will include:
what is an Intentionally Defective Grantor Trust (IDGT), understanding the Grantor Trust Rules, creating and using IDGTs as a gift planning or estate planning vehicle, installment sales of property to IDGTs, using IDGTs in family business succession planning and life insurance transfer planning, the planner's hat trick: "freeze, squeeze and burn," and comparing the use of the IDGT to the use of a GRAT.