BDIT's and BDOT's..."The Beneficiary Defective Inheritor's Trust" and "The Beneficiary Deemed Owned Trust." What are they? How do they work? Concerns and Best Practices"
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We hear about trusts all the time – many different types of trusts – for tax reasons, but also for non-tax reasons. Many transactions and trusts can save and avoid estate taxes. However, some can save and avoid income taxes as well. In this do not miss event, the GNJEPC is very excited to have nationally known expert Edwin Morrow, CFP, J.D., M.B.A., CM&AA, present on the BDOT and BDIT – the Beneficiary-Deemed-Owned Trust (BDOT) and the Beneficiary Defective Inheritor’s Trust (BDIT). When we have heard about these trusts, to some, they are too good to be true. To some they seem to offer the best of all worlds. So, what is the real story behind these two types of trusts?
While versions of the BDIT and BDOT have been around for many years, we have heard more about them in recent years. In today’s landscape of estate taxes, high exemptions, and high-income tax states, the benefits of the BDIT and BDOT can be more attractive than ever before! However, in their current form and version, they are relatively recent developments among estate planning techniques and strategies. They have some characteristics similar to an Intentionally Defective (Grantor) Irrevocable Trust (IDGIT), but there are also potential features, advantages, and benefits unlike anything we have seen before. Are they the greatest thing to come along? Are they the answer to many planner’s and client’s problems and concerns? Do they work? Come here the expert’s expert teach us the basics, how they work, what and where the concerns are, and best practices. Edwin Morrow is often credited with “inventing” the BDOT! When used properly, the BDIT and BDOT can be very powerful!
Ed Morrow is a regional Wealth Strategist with Huntington Bank. Ed works with their professionals, their clients and the client’s tax and legal advisors to create customized financial and estate plans. Ed also focuses on thought leadership in personal income tax, estate tax and private business advisory. Ed began his career in private law practice focused on tax, trust, and estate planning. Prior to joining Huntington, Ed worked at U.S. Bank Private Wealth Management and KeyBank Family Wealth Consulting Group.
Ed has a master’s degree in tax law (LL.M.) as well as a J.D. and MBA and CFP certification. He is a board-certified specialist in estate planning and trust law through the Ohio State Bar Association and a Fellow in the American College of Trust and Estate Counsel (ACTEC). Ed is a nationally known author and lecturer in the estate planning and tax field, which includes co-authoring the 998-page 19th Edition of the Tools and Techniques of Estate Planning. He is a sought-after speaker for state and national tax and estate planning conferences and has presented and been published in national forums and venues, such as the Notre Dame Estate Planning and Tax Institute, the ACTEC National Meeting, and the Heckerling Institute for Estate Planning. Ed is truly a national expert and resource.