GRATs and IDGTs

Grantor Retained Annuity Trusts (GRATs) and Intentional Defective Grantor Trusts (IDGTs) are two vehicles used frequently in implementing a family business succession plan.     Perry M. Schroeder, CPA, Managing Director of Baden, Gage & Schroeder, LLC has written a series of articles examining the benefits of GRATs and IDGTs and comparing and contrasting the two types of trusts.    Article 1:  A Grantor Retained Annuity Trust (GRAT) is one of the estate planning techniques based primarily on interest rate assumptions and the Internal Revenue Service's measuring standard (the section 7520 interest rate).    Article 2:  Succession is a critical issue for family business owners. An Intentionally Defective Grantor Trust (IDGT) is a complex and sophisticated technique that can be a great tax strategy.    Article 3: GRAT or IDGT - Which Trust is Right for My Succession Plan?  A comparison of GRATs and IDGTs - two vehicles used frequently in implementing a family business succession plan.