Intentionally Defective Grantor Trust
An intentionally defective grantor trust is a type of trust permitted by the Internal Revenue Service (IRS) for which transfers of property to the trust to are characterized as completed gifts while any income produced by the property is taxable not taxable to the trust or trust beneficiaries, rather, to the trust grantor.
This brief overview of some important considerations associated with intentionally defective grantor trusts is by no means comprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.
Updated on September 13, 2011