Intentionally Defective Grantor Trust (IDGT)
Move an appreciating position out of your taxable estate while you pay the trust's income taxes
How It Works
You establish an irrevocable trust that’s intentionally “defective” for income tax purposes but valid for estate tax purposes
You transfer appreciating assets into the trust using a gift or sale structure
You continue to pay income taxes on the trust’s gains (which reduces your taxable estate)
The trust and its growth are removed from your estate, benefiting your heirs tax-free
Key Benefits
Estate Tax Savings
Remove appreciating assets and future growth from your taxable estate
Asset Protection
Protect transferred assets from creditors and future estate settlements
Family Wealth Transfer
Pass wealth to heirs without using gift tax exemptions
Who This Is For
Holders of $5M+ in appreciating assets who want to remove future appreciation from their estate while maintaining income tax benefits. Ideal for those expecting significant asset growth.
By The Numbers
40%
Effective Estate Tax Saved
$5M
Minimum Position
$15-30K
Setup Cost
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