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What is an IDGT (intentionally defective grantor trust)?

EstateWarren Team

Quick answer

An intentionally defective grantor trust (IDGT) is irrevocable for estate-tax purposes (assets out of your estate) but "defective" for income-tax purposes (you keep paying tax on trust income), an asymmetry that supercharges wealth transfer.

IDGT structure with sale-to-trust mechanics.

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