An Intentionally Defective Grantor Trust is an estate planning tool used to protect a home of an individual for estate tax purposes as well as Medi-Cal purposes. The Intentionally Defective Trust 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.
For more information about Intentionally Defective Grantor Trust (IDGT) Contact Us at 916-369-9750