College of William & Mary Law School

William & Mary Law School Scholarship Repository William & Mary Annual Tax Conference

Conferences, Events, and Lectures

2011

Planning for the Next Generation: Installment Sale to an Intentionally Defective Grantor Trust John B. O'Grady

Repository Citation O'Grady, John B., "Planning for the Next Generation: Installment Sale to an Intentionally Defective Grantor Trust" (2011). William & Mary Annual Tax Conference. Paper 665. http://scholarship.law.wm.edu/tax/665

Copyright c 2011 by the authors. This article is brought to you by the William & Mary Law School Scholarship Repository. http://scholarship.law.wm.edu/tax

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PRESENTED BY: John B. O'Grady Benjarnin S. Candland

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Step 1: Fund the Trust You establish a grantor trust and make a gift to the Trust. The gift should be between 10-20%) of the appraised value of the asset to be sold. The gift will use some or all of your remaining unified credit.

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Step 2: The Sale You sell the assets to the Trust. The Trust gives you a promissory note. Because you are treated as the owner of the Trust, there is no gain or loss recognized as a result of the sale.

Transfer of Stock

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