Intentionally Defective Grantor Trusts
Intentionally Defective Grantor Trusts (IDGTs) in Estate Planning
Gain a comprehensive understanding of gifting and trusts and how to leverage their options that best suits your estate planning goals in this eight-part video series.
An Intentionally Defective Grantor Trust (IDGT) is a specialized estate planning tool with one main goal: freeze the value of certain assets for estate tax purposes while still allowing the grantor (owner of the trust) to receive income from those assets and maintain certain control. It achieves this goal by being “intentionally defective” in specific ways.
The key benefits of an IDGT include:
- Estate tax reduction
- Continued income access
- Flexibility and control
However, there are also some important considerations:
- Complexity
- Income tax burden
- Potential risks
Overall, IDGTs can be a valuable estate planning tool for high-net-worth individuals seeking to freeze asset values and reduce their estate tax burden.
This video, the sixth in the series, explains Intentionally Defective Grantor Trusts.
Video 6
An intentionally defective grantor trust (IDGT) is an estate planning tool that is designed to freeze the value of certain assets for estate tax purposes while allowing the trust’s assets to continue to grow tax-deferred. IDGTs can be a valuable estate planning tool for wealthy individuals who are concerned about the potential for their estates to exceed the federal estate tax exemption. To learn more about which type of trust is right for you, contact a Brady Ware advisor.
Check out other articles in this series:
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Estate, Trust, and Succession Planning Services
Mark’s background in tax enables him to provide extensive services to the firm’s clients in the areas of estate and retirement planning, and business succession consulting.