Closely held business owners may be interested in some of the same estate planning strategies used by other high-net-worth clients. These clients need estate tax and succession planning to help them effectively and efficiently transfer their wealth, including their businesses, to their loved ones. A Grantor Retained Annuity Trust (GRAT) and an Intentionally Defective Grantor Trust (IDGT) are two popular vehicles for transferring future appreciation in the value of closely held business interests to an owner’s loved ones. However, these strategies must be applied intentionally and carefully by these clients and their advisors.
4.16.2025