In recent times, intentionally defectivegrantor trust has become increasingly relevant in various contexts. Intentionally DefectiveGrantor Trust (IDGT) in Estate Planning. What Is an Intentionally Defective Grantor Trust (IDGT)? This type of trust can potentially yield significant savings on estate taxes. Understanding Intentionally Defective Grantor Trusts (IDGTs).
Building on this, an Overview of Intentionally Defective Grantor Trusts. In essence, an IDGT is a trust set up by a grantor that is treated as separate from the grantor for federal estate and gift tax purposes but is treated as owned by the grantor on a federal income tax basis. The key feature of IDGTs is that they are disregarded for income-tax purposes but not for gift and estate tax purposes. An IDGT is a somewhat special kind of irrevocable trust. This perspective suggests that, its most unique characteristic?
It is considered "defective" when it comes to income tax matters but fully functional for estate and gift tax purposes. Trusts & Taxes 101: Intentionally Defective Grantor Trusts. An IDGT is a tax planning strategy that establishes a “defective” trust, on purpose, by including a provision that allows any gift to the trust to be consider complete for gift tax purposes but not for income tax purposes.
Intentionally Defective Grantor Trusts & Your Estate Plan. Planning for Flexibility with Intentionally Defective Grantor ....
📝 Summary
Via this exploration, we've examined the multiple aspects of intentionally defective grantor trust. These details don't just inform, but also empower readers to benefit in real ways.
Thank you for taking the time to read this article on intentionally defective grantor trust. Keep learning and stay interested!