For the first time a President’s budget has included a proposal to deter use of Intentionally Defective Grantor Trusts (“IDGT”). Specifically, President Obama’s 2013 budget proposal would require any grantor trust to be included in the grantor’s estate or to pay gift taxes if assets are distributed before the grantor’s death or the grantor ceases to be treated as an owner. Even if the budget does not pass with this provision, it is significant that the government is, for the first time, taking notice of this popular estate planning technique.