Blog #210: Expert Advice on Estate Planning in a Biden Environment | Bob Ritter's Blog, ideas for financial service professionals

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There is currently a great deal of life remaining for Intentionally Defective Grantor Trusts (IDGTs). They are a superb estate planning device, but IDGTs are in the bullseye of Joe Biden’s desired tax changes. If he gets his way, there are three likelihoods of enactment to repeal their use:

Effective 1/1/21: This is not perceived as likely by most commentators.
Effective 1/1/22: This is not likely due to the “fire-sale” aspect of a date in the future.
Effective on the date of enactment: This is the consensus of most informed commentators.

The U.S. Senate presents a formidable firewall against most of Joe Biden’s tax agenda, assuming Majority Leader Schumer can’t use a process called budget reconciliation to avoid Republican filibusters, as appears to be the case after the Senate Parliamentarian nixed it.

One of the most comprehensive presentations on the use of IDGTs was recently presented at our virtual InsMark Symposium by Vincent D’Addona, MSFS, CLU®, ChFC®, CExP®, RICP®, CEPA®, AEP® (Distinguished). Vince is a senior associate with Strategies for Wealth in New York City with 41 years of experience providing financial planning, charitable planning, estate planning, retirement planning, and investment services to various clients and organizations.

Vince’s credentials are top drawer: He is a Life and Qualifying member of MDRT, Court of the Table for 33 years, Top of the Table for 19 years, and has spoken at the MDRT National Meeting. In addition, he has 35 consecutive Guardian Life’s President’s Council Qualifications and has served as president of the New York City Chapter of the Society of Financial Services Professionals. He sat on boards of both the New York City Association of Insurance and Financial Advisors and the New York Estate Planning Council. He also serves as the current President of Forum 400.

His presentation at our recent Symposium was so powerful that I am making an exception and providing a viewing to all InsMark licensees, including those who did not attend the virtual Symposium.

Click here for Vince’s extraordinary 43-minute presentation as he examines what wealthy clients should do now with IDGTs to deal with Biden’s pending tax changes.

After viewing the video, if you feel compelled to acquire (or upgrade to) the Advanced version of InsMark’s Wealthy and Wise System, click here to order it online. Alternatively, contact Julie Nayeri at julien@insmark.com.

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Note: Wealthy and Wise® (Advanced) also contains all the features of Wealthy and Wise®.

Two Choices

1) You can spend the next few months advising wealthy clients and their advisers about IDGT opportunities, or 2) you can “wait and see” what happens to the legislation.

Once the next few months pass, you may never be able to employ the magic of an IDGT again. Before law(s) are passed that restrict their use, any IDGT put into play now should survive the legislation. Don’t risk your clients and their advisers asking, “Why didn’t you tell us about this?”

Your Comments

What are your thoughts, conclusions, or questions after reviewing Vince’s presentation? Please add your comments to this Blog.

If you would like highly qualified design assistance with no commission split required, contact LifePro Financial, InsMark’s Referral Resource discussed below.

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

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Please mention my name when you talk to a Referral Resource as they have promised to take special care of my readers. My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

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Important Note #1: This information is for educational purposes only. In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

Important Note #2: The hypothetical values associated with this Blog assume the nonguaranteed values shown continue in all years. This is not likely, and actual results may be more or less favorable. Life insurance illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.