Irrevocable Grantor Income Trusts

Rachna Dhanda Balakrishna (John Hancock, US Insurance) has recently posted an abstract of his article Defective Grantor Trusts: Greater Flexibility and Income Tax Leverage on SSRN.  The article appears in Estate Planning, Vol. 32, p. 30, December 2005.

Here is the abstract of his article:

In this article, I review the features of so-called defective irrevocable grantor income trusts, also known as DIGITs. These trusts can provide estate and income tax benefits for high-net worth clients and can be used in conjunction with gifts, installment sales or as an exit strategy from a life insurance premium financing program (either third-party financing or private financing).