Estate Planning with Intentionally Defective Grantor Trusts

As you may have noticed, both of last week’s blogs discussed Intentionally Defective Grantor Trusts (IDGTs). This began our month of focusing on IDGTs. Each month I will have a theme and focus the majority of the blogs on that topic. In addition, beginning this month, I will conclude each month’s theme with a one-hour CE/CPE event. I will host this month’s CE/CPE Webcast: Diamonds in the Rough – Estate Planning with Intentionally Defective Grantor Trusts (IDGTs) on Friday September 27, 2013 at 1:30PM EST.

Daily, I receive questions from advisors on topics ranging from Asset Protection to Life Insurance and my response always begins with the question: Is there an Intentionally Defective Grantor Trust (IDGT) for us to use in the estate plan?

I continue to be amazed by the versatility of an IDGT. These trusts have a long history in the tax code, provide excellent asset protection and possess excellent dispositive provisions. I view them as a Swiss Army knife in financial planning.

IDGTs are just about everywhere in the planning universe. Both gift and dynasty trust(s) are IDGTs.  GRATs, GRUTs, QPRT are IDGTs. The grantor trust rules were first enacted in 1924 and have been revisited and revised over the years.  Understanding their history is necessary in order to correctly apply them in a client’s financial plan.

The learning objectives for the presentation are: to discover the applications of IDGTs in your clients’ financial plans; to understand the applications of life insurance in estate planning and asset protection; to understand the role of asset protection in your clients financial plans; to discover how the correct application of an IDGT in a client’s financial plan will address several planning issues in one “convenient and easy to use” trust.

And yes, IDGTs have come under attack in the Obama Administration’s Fiscal Year 2013 Revenue Proposals (the “Green Book”), which if enacted into law could essentially eliminate the use of IDGT(s).  So, there may never be a better time to engage in some sophisticated income, estate, and gift planning.

The presentation is web-based and virtual seating is limited. For more information or to register, please send me an email at


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