Freeze estate value at today's price; all future growth escapes estate tax.
Sell appreciating assets (business interests, real estate, pre-IPO stock) to an IDGT in exchange for a long-term promissory note at the AFR. Because the trust is 'defective' for income tax (grantor pays the tax) but respected for estate/gift purposes, all future appreciation compounds inside the trust — outside the estate. Combined with valuation discounts, this is the workhorse estate-freeze technique for $10M+ estates.
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Multiply the $10M §1202 exclusion across multiple trusts.
4% corporate tax + 0% capital gains for bona fide residents.
Stack the $500K primary-home exclusion on top of a 1031 deferral.
Convert Traditional to Roth during sabbaticals or business-loss years.
Capitalize property taxes and interest on undeveloped land.
Deduct now, control forever, employ heirs.
Ordinary loss (not capital loss) on failed small biz — up to $100K.
Buy leveraged real estate inside your IRA — tax-deferred or tax-free.