IDGT: This trust is supposed to “fail”
Abstract: Trusts come in all shapes and sizes. However, from an income tax perspective, there are basically two types: grantor trusts and nongrantor trusts. An intentionally defective grantor trust (IDGT) has the best attributes of both trust types. This article explains how an IDGT works. A sidebar discusses the ins and outs of selling assets to an IDGT.