INTENTIONALLY DEFECTIVE GRANTOR TRUST - IDGT
An irrevocable trust that is used to freeze some assets of an individual for estate tax, not income tax. This estate planning tool is created as a grantor trust to make sure the individual continues to settle his income taxes because income tax laws won’t count or consider the assets that have been taken away from the individual.
However, for estate tax, the worth of the grantor’s estate is lessened by the amount of the asset transfer. The individual will "sell" assets to the trust in return for a promissory note up to certain length, such as 10 years or 15 years. That note will pay sufficient interest to categorize the trust as above market, but the value of underlying assets are awaited to increase at a faster pace.
POPULAR TERMS
SEC Form 6-K
SEC Form 6-K is a form mandated by the Securities and Exchange Commission. SEC Form 6-K must be submitted by foreign private issuers of security in ...
Assessment
It is the term when a property’s value should be determined for some taxation purpose. It is usually done for houses or cars annually or mont ...
Ex-Rights
Shares of stock which are trading without rights attached because it had either expired, been transferred to another trader, or been exercised. Ori ...
Regulated Market
A market that is regulated by government bodies to control charges and to ensure that fair services are offered to customers.
Spring Loading
Spring loading is a practice of option-granting. In here, options are granted prior to a positive newsworthy event. The reason behind this is that, ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Renovate or Move?
You have a well-furnished home with a garden full of flowers and plants. Imagine sharing your beautiful abode, which has four bedrooms, a kitchen, ...
Buying a Home: Looking for an Agent
You will need to find an agent if you want to purchase your dream house. These agents are the only ones who have access to lock box codes, which ar ...
Connection of Inflation and Interest Rates
We cannot simply ignore the connectivity of inflation and interest rates. Both items are interrelated. So, whenever there is a news item about a co ...
A Guide to Becoming a Finance Expert
Wouldn’t it be nice not having to rely on another person when managing your funds? Aside from the added convenience it brings, being able to ...
What is the Standard Moving Cost?
You concluded remodeling is expensive upon considering all important factors. So you decided to move to another house instead. But, is moving less ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 02:30 | Retail Sales | Oct | |
| 11:00 | M3 Money Supply | Oct | |
| 11:00 | Private Sector Credit | Oct | |
| 13:00 | CBI retail sales volume balance | Nov | |
| 15:30 | Current Account | 3 quarter | |
| 19:00 | FOMC Member James Bullard Speaks | ||
| 19:00 | FOMC Member John C. Williams Speaks | ||
| 01:30 | Unemployment Rate | Oct | |
| 01:50 | Retail Sales | Oct |
