Article On Intentionally Defective Grantor Trusts

Keith Durkin (Broad and Caassel) recently published an article entitled, Understanding Tax Payment/Reimbursement Clauses for Sales to Intentionally Defective Grantor Trusts, Probate & Property Magazine: Volume 29, No. 5 (2015). Provided below is an abstract of the article:

To minimize the imposition of the estate tax and generation-skipping transfer tax, many estate-planning attorneys employ sophisticated estate-planning strategies. One effective strategy for accomplishing these goals is to use a gift and sale of appreciating assets, such as a nonvoting interest in a closely held business, to an irrevocable defective grantor dynasty trust established for the primary benefit of an individual’s lineal descendants.