Installment Sale to IDGT at AFR
Sell assets to your trust over time at the IRS minimum rate, freezing estate value and transferring growth
How It Works
You sell appreciated assets to your IDGT in exchange for a promissory note
The note carries interest at the Applicable Federal Rate (AFR), currently 4-5%
Your trust pays you fixed installments over the note term (typically 9-15 years)
All appreciation above the AFR accrues to the trust and passes to heirs free of gift and estate tax
Key Benefits
Estate Freeze
Lock in today’s value while all future growth benefits heirs
Low Interest Rate
Use favorable AFR rates to maximize wealth transfer efficiency
Large Transfers
Move significant wealth without using lifetime gift exemption
Who This Is For
Holders of $5M+ in highly appreciating assets who want to transfer wealth efficiently. Best when AFR rates are low and you expect asset appreciation to exceed the rate.
By The Numbers
4-5%
Effective Transfer Rate
$5M
Minimum Position
9-15 years
Typical Note Term
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