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Robert A. Imparato, Jr CFP®
CERTIFIED FINANCIAL PLANNER™ professional
Craig A. Hyldahl CFP®
CERTIFIED FINANCIAL PLANNER™ professional
R.I.C.H. Planning Group, LLC
105 Fieldcrest Avenue, Suite #507
Edison, NJ 08837
Robert: 732-326-5240
Craig: 732-326-5240
Fax: 732-326-5331
Robert: robert@richplanninggroup.com
Craig: craig@richplanninggroup.com
Website: www.richplanninggroup.com
September/October 2024
Minimize The Estate Tax Bit with an IDGT
The current favorable estate tax exemption amount is scheduled to expire on December 31, 2025, unless Congress acts to extend it or make it permanent. Without action, the exemption amount will revert from $13.61 to $5.6 million per individual, adjusted for inflation. If this could impact you, consider transferring assets out of your estate starting now. With this in mind, this issue begins a series of trust strategies that may help minimize estate tax.
Short Definition
Intentionally defective grantor trusts (IDTs) can transfer wealth to beneficiaries while minimizing estate tax, however the grantor continues to pay income taxes on transferred assets.Setting It Up
Using your available lifetime estate-and gift-tax exclusion, you, the grantor, irrevocably transfer assets you expect to appreciate to the IDGT with no federal gift-tax consequences. Be aware that after the transfer, you can no longer financially benefit from those assets. If the value of the gift exceeds your available tax exclusion, you may sell the asset to the trust on an installment sale basis for a long-term note (say 20 years) and incur no capital gains due to the trust’s irrevocable status. As the assets held in the trust value grow, estate tax on the growth may be avoided for multiple generations.Intentionally defective grantor trusts (IDGT) aren’t for every high-net-worth individual. Your trusted tax and legal professionals can determine if one might be appropriate for you.
GE-6734756.1(7/24)(Exp.7/26)
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Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services.
R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. GE-6572038.1 (4/24)(Exp. 4/26)
CFP® and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc.
These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
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