Intentionally Defective Grantor Trusts in Arizona and New Mexico

An IDGT, or intentionally defective grantor trust, is an estate planning tool that is used to greatly reduce estate taxes and protect certain assets for beneficiaries against creditors, ex-spouses and other parties. If properly created, it can be very effective in transferring wealth to succeeding generations without incurring generation-skipping transfer tax. It can also provide significant income tax and capital gains tax benefits.

The law firm of Morris Hall, PLLC, has the experience and knowledge of tax law and Internal Revenue Service (IRS) regulations to help you set up an IDGT using every legal advantage and benefit for your estate. This particular estate planning device creates a trust that is effective for estate taxes, but defective for income taxes. It is a complex strategy that works very well for high net worth individuals.

Setting Up an IDGT

Many people wish to pass on assets to succeeding generations, but there are significant consequences for doing so without protecting those assets with a proper trust or other estate planning document. Through an IDGT, a person can accomplish his or her goals and help provide for the future.

Beneficiaries of an IDGT are usually children or grandchildren who will receive assets that appreciate even without reduction for payment of income taxes. If structured properly, the IDGT will allow a person to lower the taxable estate on greatly appreciated assets and to protect the assets from creditors of the individual and his or her beneficiaries.

Contact Morris Hall for Asset Protection Through Trusts

Contact us to arrange a consultation with an experienced lawyer today. Our offices are located in Phoenix, Tucson, Albuquerque and communities throughout Arizona and New Mexico.