EST2316. Goblins Lamentation List: Unscrambling "Installment Obligations"

With higher income tax rates likely in the future and the popularity of sales to IDGTs in estate planning, understanding the income tax aspects of taxable installment obligations vs. IDGT installment notes vs. intrafamily promissory notes is crucial. This presentation (a fresh look at an old planning idea) will discuss the income tax benefits, pitfalls, planning opportunities, and the surprising unknowns surrounding taxable and non-taxable deferred payment arrangements commonly used by planners.

Learning Objectives:

• Go beyond the basics of taxable installment obligations.
• Recognize and plan to avoid the unexpected income tax consequences when grantor trust status is terminated.
• Explore trust and partnership planning opportunities with deferred payment obligations.