Join us at our Member Meeting
Wednesday, August 3rd at 11:30 AM
A Sale to a BIDIT Should Work as Well as a Sale to an IDIT
Michael D. Mulligan, J.D., ACTEC
Partner, Co-Chair Estate Planning Department - Lewis, Rice, LLC, St. Louis, Missouri
Both In-Person and Virtual Attendance Available
In-Person Attendance: Members $40 and Non-members $50, Virtual Attendance: $30
In-Person Attendance
The Pacific Club
4110 MacArthur Boulevard, Newport Beach, California • www.pacificclub.org
Begins at 11:30am
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 pm - 1:00 pm
Click Here to Register Online for Both In-Person and Virtual
The sale to an Intentially Defective Irrevocable Trust (“IDIT”) in exchange for the IDIT’s promissory note has been a popular estate planning strategy since the mid-1990s. A more recent variation of the standard sale to an IDIT technique is the sale to what can be called a Beneficiary Intentionally Defective Irrevocable Trust (“BIDIT”) in exchange for the BIDIT’s promissory note. In the case of an IDIT the trust has no provisions that would cause assets that the seller transfers to the IDIT to be included in the sellers’ Federal gross estate. This is not the case with a BIDIT. A BIDIT is established by a grantor other than the seller. The seller is granted interests and powers which would typically cause the assets which the seller transfers to the BIDIT to be included in the seller’s estate. It appears that the sale to an IDIT technique “works” and is actually recognized as effective by the Internal Revenue Service. This presentation will examine the two techniques and draw the conclusion that the sale to a BIDIT should also be a successful estate planning strategy.
Michael D. Mulligan, J.D., ACTEC
Partner, Co-Chair Estate Planning Department
Lewis, Rice, LLC, St. Louis, Missouri
Michael D. Mulligan is Co-Chair of the Firm's Estate Planning Department. He is a principal originator of the estate planning strategy of sale to defective trust for an installment note, which is now widely used by estate planners nationally. Mike has been elected to the Estate Planning Hall of Fame® and has been awarded the Accredited Estate Planner® (Distinguished) designation by the National Association of Estate Planners & Councils. Prior to joining Lewis Rice LLC, he served as a law clerk to the Hon. William H. Webster, then U.S. District Judge, Eastern District of Missouri, subsequently Director of both the Federal Bureau of Investigation and the Central Intelligence Agency.
Mike is currently a member of the Editorial Board The Journal of Taxation, and he was formerly a member of the Editorial Boards of Estate Planning magazine and the Estates, Gifts & Trusts Journal. He has written numerous articles for these publications and other tax and professional journals. As a respected expert in his practice, he is a frequent lecturer on tax and estate planning subjects, and he has spoken at tax institutes and seminars across the country.
Mike is a fellow of the American College of Trust and Estate Counsel, and he is a member of the Estate Planning Council of St. Louis, the St. Louis Metropolitan Bar Association, the Missouri Bar, and the American Bar Association. He is a member of the Taxation Section and the Real Property, Probate, and Trust Section of the American Bar Association. Additionally, he is a member of the Taxation Section and the Probate and Trust Section of the Missouri Bar, formerly a Chairman of the latter section.
Mike is AV® Preeminent™ Peer Review Rated by Martindale-Hubbell, was selected by his peers for inclusion in The Best Lawyers in America® 1987-2022, and was selected for inclusion in Missouri & Kansas Super Lawyers® 2005 and 2007-2020.
Objective: Understanding complexities of Selling Assets to BIDITs vs. IDITs
There are no prerequisites for this program.
There is no required advanced preparation.
The Program Level for this will be intermediate.
Delivery Method: Group Live-Presented Online Due to Covid 19
Prerequisites and Program Content:
There are no prerequisite education or prior experience needed for any of STEP Orange County’s meetings or events. All sponsored events are relevant learning objectives to assist in the continuing education for MCLE and CPE. All levels are encouraged to participate and all participants will take away knowledge regarding the subject matter. There is also no advanced preparation needed for any of the meetings or events.The field of study for this program is Taxes and will be delivered by Group Live-Presented Online Due to Covid 19.
STEP Orange County is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE Credit. Complaints regarding registered sponsored may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org
Compliant/Refund Resolution Policy:
For more information regarding administrative policies such as complaints and refunds, please contact Greg Custer or other Board Members of STEP Orange County.
Greg Custer: (949) 216-2202