EFTA01139566Set 9
27p13,363w
lion's share of cases, the goal is to create the so-called "defective grantor trust,"
a grantor trust for income tax purposes that will not cause the trust assets ... amend the terms of the trust. This power is thus a good
candidate for "defective grantor trust" status.
Borrowing on a below-market interest basis, however, is fraught with income ... gift
tax consequences.' Accordingly, most planners seeking to create a defective grantor trust
through the borrowing power should provide that any such loans must require the grantor to
pay adequate
https://www.justice.gov/epstein/files/DataSet%209/EFTA01139566.pdf
EFTA01103621Set 9
2009-12-1545p26,187w
What Works Now? 3
A. Inter-Family Loans 3
B. Sale to An Intentionally Defective Grantor Trust 6
C. Grantor Retained Annuity Trusts 9
D. Charitable Lead Annuity Trusts ... senior family members to junior family members, senior family members could create a
"intentionally defective" grantor trust for the benefit of junior family members and make a loan ... Higher AFR Note," 109 J. OF TAXIN 22 (2008).
B. Sale to An Intentionally Defective Grantor Trust. Although a popular trust
strategy, a sale of an asset to an Intentionally
https://www.justice.gov/epstein/files/DataSet%209/EFTA01103621.pdf
EFTA01091832Set 9
2004-11-1967p15,221w
such stock to a FLP does not occur inadvertently. Similarly, gifts
made to defective grantor trusts offer the additional attractions of possible future
This educational presentation is intended for discussion ... actually incurred. A grantor
retained annuity trust (a "GRAT"), an installment sale to a defective grantor trust
and a partnership freeze each have attractive planning attributes in this setting.
Each ... discussed here,
appropriate professional advice should be obtained.
EFTA01091834
2. Installment Sale to a Defective Grantor Trust. An installment sale of
Company stock, or of a limited partnership interest
https://www.justice.gov/epstein/files/DataSet%209/EFTA01091832.pdf
EFTA01188079Set 9
2014-02-244p2,252w
residency claim against them.
...and now for the New York sales tax issue
"Intentionally defective grantor trusts" have an unfortunate name, but are anything but "defective.- Rather,
they are carefully ... includible in the grantor's
estate when she dies. A typical means for creating defective grantor trust status is for the grantor to have
the power to reacquire trust properly ... this
proposed swap, the opinion concluded that the grantor and the defective grantor trust are "separate
taxpayers capable of entering into a sale" for purposes of the sales tax, even
https://www.justice.gov/epstein/files/DataSet%209/EFTA01188079.pdf
EFTA01146296Set 9
2012-10-103p1,151w
reasons, I'm a fan of gifting one's personal residence to an intentionally
defective grantor trust (IDGT).
However, even for individuals with the means and desire to give ... here's how I would consider structuring such a gift:
• Set up an 'Intentionally Defective Grantor Trust" (IDGT) — that is, a trust that
allows transferred assets to be removed from
https://www.justice.gov/epstein/files/DataSet%209/EFTA01146296.pdf
EFTA00876075Set 9
2018-02-254p1,376w
Advised Funds (DAFs), Qualified Personal
Residence Trusts (QPRTs), Charitable Remainder Trusts (CRATs) and/or Intentionally Defective Grantor Trusts (IDGTs)
14. Provide complete copies of any audited financial statements, including applicable exhibits
https://www.justice.gov/epstein/files/DataSet%209/EFTA00876075.pdf