Intentionally Defective Grantor Trusts: Asset Transfer Planning Strategies and Form 1041 and 1099 Reporting Compliance

Recording of a 110-minute CPE webinar with Q&A

Conducted on Thursday, March 17, 2016

Recorded event now available

or call 1-800-926-7926
Course Materials

This course will provide tax professionals with a detailed review of the advantages and applications of intentionally defective grantor trusts (IDGTs), compliance with required tax forms for these entities, and tax planning approaches that utilize IDGTs.


IDGTs are created to deliberately run afoul of IRC Sections 671-679. They are used to freeze values for estate tax purposes, while transferring assets from the estate free of gift tax. IDGTs can serve to protect the trust assets from claims by creditors and former spouses.

If set up correctly and compliant with current law, then sales or gifts to these trusts can exclude the assets from the grantor’s estate. However, trust powers must be carefully selected and understood in order to avoid an incomplete gift and unintentional inclusion of income in the grantor’s estate.

While IDGTs offer important tax benefits, estate planning tax advisors and counsel must be aware of potential pitfalls associated with IDGTs. These pitfalls include potential recognition of deferred gains in the case of an early death, as well as legislative uncertainty related to IDGT planning techniques.

Listen as our authoritative panel of estate planning tax advisors and counsel discusses best practices for maximizing the benefits of IDGTs and overcoming compliance challenges on Form 1041 and Form 1099.



  1. IDGT advantages and applications
  2. Structuring transactions with IDGTs
  3. Tax reporting issues relating to IDGTs
  4. International issues


The panel will explore these and other relevant issues:

  • Reporting installment sales in conjunction with IDGTs
  • Understanding potential impact from discussions in Washington on use of IDGTs
  • Tax planning approaches that utilize IDGTs
  • Complying with Form 1041, TINs, 1099s among others


Jackson, Donna
Donna J. Jackson

Donna J. Jackson & Associates

Ms. Jackson's practice focuses on estate planning, trusts and estates, wills, and probate law. She is a member of...  |  Read More

Lipoff, Lawrence
Lawrence M. Lipoff, CPA, TEP, CEBS


With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private...  |  Read More

Walny, Eido
Eido M. Walny

Walny Legal Group

Mr. Walny's practice focuses on estate planning, asset protection, business succession, probate, and trust...  |  Read More

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