Income Tax Reimbursement Clauses in Irrevocable Grantor Trusts - When to Use Them and When Not to
William S. Forsberg and James C. Worthington
36 PROBATE& PROPERTY MAY/JUNE 2005 One estate planning technique in common use today that freezes estate tax values in today’s dollars while shifting substantial asset appreciatiio to the next generation is called a “sale [of assets] to an irrevocable grantor trust,” or IGIT. The IGIT is a particuularl good tool when it is desirable to transfer closell held business interests that are highly appreciating or have good cash flow, such as S corporation stock, limitee partnership interests, or...