The IDGT: A useful tool for transferring your business to your heirs

Description

Abstract: It’s a common dilemma for many business owners: The bulk of your wealth is tied up in your company and you’d like to begin transferring it to your children. But you have several concerns, including reducing the tax bite, retaining control and ensuring you have enough for a comfortable retirement. This article explains how an intentionally defective grantor trust can minimize or even eliminate gift and estate taxes while helping family business owners retain control of their companies and maintain an income stream.