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  • Third-Party

Advanced Planning: The benefits of a Note Sale to an Intentionally Defective Grantor Trust

If you have a large asset… you’d like to transfer out of your estate, minimizing estate taxes may be a top priority for you. If you’re like many other affluent individuals, you may also be looking for ways to transfer your wealth to your heirs, while potentially reducing gift taxes.[1]

One solution that can help you achieve all three of these objectives is a Note Sale to an Intentionally Defective Grantor Trust (IDGT). It’s a technique for transferring a highly appreciating asset from an individual’s estate to a trust. Often, this planning strategy uses life insurance, either to create liquidity or to further leverage the IDGT funds.

Is this strategy right for you? You may wish to consider

implementing this technique if you:

  • have highly appreciating assets; or

  • own assets that generate high cash flow or substantial amounts of income; or

  • wish to transfer your business to a family member who doesn’t have the money to buy it outright.

Download the .PDF Guide Below:

Note Sale to IDGT Client Guide
Download PDF • 7.96MB


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