Using installment sales to non-grantor trusts for estate and income tax planning. 27 April 2022

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STEP Orange County
Event Type

The Pacific Club
4110 MacArthur Boulevard
Newport Beach, CA
United States of America

Speaker: Jerome Hesch, Esq., ACTEC, Of Counsel - Meltzer, Lippe, Goldstein & Breitstone, LLP

We've applied for approval to offer MCLE, CPE, CTFA, CA INS, CFP

  • Both in-person and virtual attendance available
  • In-person attendance: Limited in person and spaced seating. Appropriate local mask and distancing rules will apply to all in person gatherings.
  • Virtual attendance: Zoom link will be provided prior to meeting. 12.00-13.00

For individuals who desire to sell their business or investment assets while they are living, the step-up in basis at death is not an alternative.

(i) a property structured installment sale to a non-grantor trust can allow the gain the seller realised on the installment sale to be reported by the seller far in the future even though the non-grantor trust sells the purchased asset for cash a few years later.

(ii) how an installment sale to a non-grantor trust can be a viable estate freeze, taking advantage of valuation discounts and shifting a portion of the asset’s operating income and its subsequent appreciation in value out of the decedent’s estate.

(iii) unlike a grantor trust where the grantor trust’s income is taxable at the grantor’s highest income tax rates, a non-grantor trust can be used to shift taxable income to taxpayers in lower marginal income tax brackets.

(iv) how an irrevocable non-grantor trust with intangible assets in a state with no state income taxes can be used to eliminate state income taxes and unlike the incomplete gift trust that, the trust is not exposed to the estate tax.

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In-person attendance: Members
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In-person attendance: Non-members
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Virtual attendance
STEP Orange County
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