Romney’s Savvy Estate Plan, a Model for Wealth Transfer

Romney’s [estate planning] vehicle is known as an “intentionally defective grantor trust” or by the acronym IDGT — hence the nickname: “I Dig It.” Such trusts permit donors to give potentially unlimited amounts to children free of estate and gift taxes.

All politics aside, the presence of an individual as financially savvy as Mitt Romney atop the Presidential debate stage brings some important estate planning lessons into the public
view. Not least amongst them is the “Intentionally Defective Grantor Trust” and the acronym-turned-message, “I DiG IT.”

Romney and his use of the IDGT (accordingly pronounced, “I DiG IT,” if you aren’t into spelling out your acronyms) were the subject of a recent article in Bloomberg News titled “Romney ‘I Dig It’ Trust Gives Heirs Triple Benefit.”

A popular wealth transfer strategy among estate planning attorneys, the IDGT provides a “triple benefit” to taxpayers who employ it. The key, as with so many wealth transfers, is to
place unappreciated assets in an IDGT and thereby shelter them as they grow. If the assets then appreciate in the IDGT, then the transfer will ultimately maximize the wealth transferred and minimize the attending taxation.

To learn more about this popular IDGT strategy and how it may benefit you (and your loved ones), check out the original article and contact your estate planning attorney to explore whether it may be an appropriate strategy for you.

Contact Meier Law Firm to discuss all of your Estate Planning needs. 


Reference: Bloomberg (September 27, 2012) “Romney ‘I Dig It’ Trust Gives Heirs Triple Benefit

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