I think I found something too good to be true. My non-legal reading of the document seems to say that you can avoid all gift, income and estate taxes to all parties by setting up an IDGT. In fact, my father could use it as a tax-free stream of income because the trust is paying him interest on the “note.”
It seems like the ultimate tax loophole.
So what’s the catch? Why wouldn’t everyone use this not only for estate planning, but for general savings?