5 Types of Estate Freeze Trusts

An estate freeze trust is a way that you can get around paying estate taxes and pass your assets onto a beneficiary. Here are a few different types of estate freeze trusts.

1. Annuity

An annuity is an arrangement that is actually treated as a sale instead of a gift. With this type of annuity, you are going to set it up so that your beneficiary will receive regular payments.

2. Grantor-Retained Annuity Trust

With this arrangement, you are going to make a donation to a trust. The trust will then pay you a regular annuity payment for a specific period of time. After this term is over, the assets in the trust can be passed onto a beneficiary without paying estate taxes.

3. Unitrust

With this type of trust, a certain percentage of the assets in the trust will be paid to the beneficiary annually.

4. Installment Sales

With this method, you are going to pass your assets to a beneficiary and they are going to make installment payments to you in return.


An intentionally defective grantor trust (IDGT) is another tool that you can use. With this type of trust, you are going to continue paying income taxes on the assets in the trust. This is going to allow the assets to grow and then you will be able to pass them on to the beneficiaries at a later date.

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