Intentionally defective grantor trust sample
is a grantor trust for income tax purposes, the INTENTIONALLY DEFECTIVE GRANTOR TRUSTS sale of the asset would not result in any taxable gain to the grantor (for income tax purposes, the grantor is considered to be selling an asset to him or herself). There also is no interest in come reported by the grantor or interest deduc tion to the IDGT.An Intentionally Defective Grantor Trust (IDGT) is a trust that is defective solely for income tax purposes. The fact that the grantor trust rules are different for income tax and for gift and estate tax creates planning opportunities. For estate and GSST purposes, transfers to IDGTs will be completed gifts and outside the estate. intentionally defective grantor trust sample
Sep 18, 2014 WHAT IS AN INTENTIONALLY DEFECTIVE GRANTOR TRUST? This is commonly known as an IDGT and is used for income and estate tax advantages.
An intentionally defective grantor trust (IDGT) is a complete transfer to a trust for transfer tax purposes but an incomplete, defective transfer for income tax purposes. In the typical Intentionally Defective Grantor Trust transaction, the grantor makes a seed money gift to the trust, then sells additional property to the trust (See Form B) at fair market value (possibly discounted) in exchange for an interestbearing installment note (See Form C).intentionally defective grantor trust sample Intentionally Defective Grantor Trusts Funding and Structuring Sales to Transfer Assets, Retain Control and Reduce Estate Taxes called an Intentionally Defective Grantor Trust Name came about because a defect in the trust causes its income to be taxed to