$100MM Net Worth | Florida | IDGT + Liquidity Planning
The Snapshot
Who:
- Florida Real estate entrepreneur (owner-operator)
- Married, 3 children
- Husband 51 | Spouse 47
- Florida residents
Balance Sheet Reality:
- ~$100MM net worth
- Heavily concentrated in operating real estate
- Limited liquidity relative to estate size
Estate Planning Status:
- Basic estate documents in place
- No prior taxable gifts
- Lifetime exemptions largely unused
Planning Assumption:
- Mortality modeled at age 85
The Core Issue
On paper, the estate plan “existed.”
In practice, it was incomplete.
- No intentional use of lifetime exemptions
- No structure to move future appreciation off the balance sheet
- No dedicated liquidity to fund estate taxes
- High probability of forced asset sales at the second death
The family wasn’t under-planned — they were under-engineered.
The Strategy
IDGT + Insurance Liquidity Architecture
1. Intentionally Defective Grantor Trust (IDGT)
- Selected real estate interests transferred to an IDGT
- Structured to keep income tax obligation with the grantor
- Appreciation compounds outside the taxable estate
- Control retained through trustee design and entity governance
2. Strategic Use of Lifetime Exemptions
- First meaningful gifts made while exemptions were fully available
- No prior gift tax filings meant a clean starting point
- Focused on assets with the highest long-term appreciation
3. Insurance as Liquidity — Not Return
- Permanent life insurance held outside the taxable estate
- Sized specifically to anticipated estate tax exposure
- Designed to:
- Pay estate taxes
- Preserve operating real estate
- Avoid distress sales or family conflict
Before / After: Estate Tax Exposure (Illustrative)
| Before Planning | After IDGT + Liquidity Plan | |
| Estimated Estate at Second Death | $180MM | $125MM |
| Assets Outside Taxable Estate | Minimal | Significant future appreciation |
| Taxable Estate | ~$180MM | ~$125MM |
| Estimated Estate Tax (40%) | ~$72MM | ~$50MM |
| Dedicated Liquidity Available | $0 | Insurance proceeds |
| Forced Asset Sales Risk | High | Low |
Illustrative only. Assumes conservative growth and no further gifting.
The Outcome
- Estate tax exposure materially reduced
- Future appreciation shifted outside the estate
- Liquidity clearly earmarked for estate settlement
- Operating real estate preserved for the next generation
- Flexibility retained as tax laws and asset values evolve
Most importantly:
The family replaced uncertainty with intentional structure.
Why This Matters
For owner-operators, estate planning isn’t about paperwork.
It’s about keeping the business intact when it matters most.
IDGTs handle the transfer.
Insurance handles the timing.
Together, they protect both the assets and the family.
IBEX CAPITAL
In the Peace of Mind Business™
