Worldwide: Trusts

Something labeled “defective” usually does not work properly. The intentionally “defective” grantor trust, or “IDGT,” however, is a proven workhorse for tax-efficient business succession planning. A carefully planned and executed IDGT transaction enables business owners to transfer significant value in trust for the benefit of younger generations, with remarkable tax efficiency, while retaining control over the business. Two seemingly contradictory tax attributes of the IDGT underlie its tax efficiency.

Although IRS enforcement efforts have evolved, estate and gift tax examinations remain an area of focus, particularly for high value estates and sophisticated wealth transfer transactions.

The U.S. Treasury issued final regulations on July 9, 2026, modernizing the requirements for qualified domestic trusts (QDOTs) under Internal Revenue Code Section 2056A. These updated rules introduce new procedures, filing requirements, and security arrangements that estates must follow when a deceased spouse leaves behind a non-U.S. citizen surviving spouse, fundamentally changing how international couples navigate estate tax planning.

While supporters of the 2026 Billionaire Tax Act (the “BTA”) project approximately $20 billion annually over five years, those projections depend on legal, valuation, and enforcement assumptions...

California's Professional Fiduciaries Act imposes heightened duties on licensed fiduciaries to detect and respond to financial elder abuse within trust estates. When vulnerable adults face exploitation from family members, caregivers...

Trusts serve as essential instruments for estate and tax planning, offering asset protection and control. Key considerations include understanding tax implications of income distribution versus accumulation, proper trust funding procedures, selecting between individual and corporate trustees, and navigating common implementation pitfalls that can undermine trust effectiveness.

Brian Lucareli and John Melko explore the intricacies of Delaware Asset Protective Trusts, examining statutory exceptions and how enforcement varies across different states. The discussion provides families and advisors with practical insights into evaluating asset-protection planning strategies.

Ultra-high-net-worth individuals and families face a valuation environment that is far more complex than simply determining the worth of an asset. In the context of trust, gift, and estate tax planning, valuation becomes a foundational discipline that affects wealth transfer strategy, tax efficiency, compliance, and long-term family outcomes.

Divorce proceedings involving significant or complex assets are rarely straightforward. Beyond the emotional and legal dimensions, these cases often hinge on a clear and defensible understanding of financial reality.