I. Introduction
   A. Overview of the Technique and the 2001 Act
   B. What Is An Intentionally Defective Grantor Trusts?

II. Understanding the Grantor Trust Rules

III. Creating Intentionally Defective Grantor Trusts Without Causing Inclusion in the Grantor’s Gross Estate

IV. Uses and Advantages of the Defective Grantor Trust
   A. Income-Generating Trusts
   B. S Corporation Opportunities
   C. Defective Life Insurance Trusts
   D. Sale of Assets to a Defective Grantor Trust

V. Installment Sales of Property to Intentionally Defective Grantor Trusts
   A. Creation of the Trust
   B. Funding of the Trust
   C. Installment Sale to the Trust
   D. Design of the Installment Note
   E. Income Tax Consequences to the Trust Grantor
   F. Gift Tax Treatment of the Grantor
   G. Estate Tax Consequences to the Grantor
   H. Generation-Skipping Transfer Tax Concerns
   I. IRS Private Letter Ruling Guidance PLR 9535026

VI. Comparing the Installment Sale to the Intentionally Defective Grantor Trust with a Transfer of Assets to a GRAT

VII. Defective Trust Under IRS Attack: The Karmazin Case


APPENDIX MATERIALS

1. Sample Clauses to be Used to Make a Standard Grantor Trust “Defective”

2. Sample Form of Intentionally Defective Grantor Trust

3. Sample Form of Installment Sale Purchase Agreement

4. Sample Form of Promissory Note

5. Alternative Form of Promissory Note: Contains Self Canceling Provision (SCIN)
 

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