An Intentionally Defective Grantor Trust (also known as an IDGT) is an estate planning tool used to protect a home of an individual for estate tax purposes as well as Medi-Cal purposes. The IDGT is created as a grantor trust with a purposeful flaw that ensures that the individual continues to pay income taxes.
The IDGT can be a very effective estate and Medi-Cal planning tool if structured properly, allowing a person to protect their home, while not allowing for a disqualification period with Medi-Cal while gifting assets to beneficiaries. The grantor of the trust can also retain their property tax and capital gains tax benefits after the home is transferred to the trust.
The process of estate planning may seem daunting… but, it doesn’t have to be. Estate planning and the creation of an IDGT is a proactive way to ensure that you, your family, and your estate are taken care of the way you want them to be. Our expert team of attorneys at Beyer, Pongratz, and Rosen are here to help you through the process. To learn more about Estate Planning or the creation of an IDGT, you can Request a Consultation or call, directly, at 916-369-9750. We look forward to working with you!