Remember the gum commercial with twins extolling you to double your fun? Well if you sell assets to a grantor trust for a note (affectionately an “IDIT” or “IDIGIT”), and if at a later date you want to engage in another sale transaction, do not use the same IDIT. Set up a new trust for the new transaction. If the first transaction washes out (e.g. the real estate assets underling the sale declined dramatically in value), why taint the second transaction with that risk? If the first transaction was a homerun and the next is a disaster, the value of the first will be used to cover the second. Set up a new trust and protect your planning gains.
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