What makes an intentionally defective grantor trust defective?
What makes an intentionally defective grantor trust defective? The trust is called “intentionally defective” because the settlor relinquishes ownership of the assets for estate tax purposes but remains the owner of the trust for income tax purposes. Are intentionally defective grantor trusts irrevocable? Intentionally Defective Grantor Trusts (IDGTs) are the premier vehicles for affluent families to transfer their wealth to the next generation. An IDGT is an irrevocable trust created by an individual (the "grantor") during life. Does an intentionally defective grantor trust get a step up in basis? A basis adjustment can even be preserved in irrevocable trust planning....