What is an “Intentionally Defective Irrevocalbe Grantor Type Trust”?
The preferred method of holding all valuable assets is through an Irrevocable Trust or an Intentionally Defective Irrevocable Grantor Type Trust. The “intentional” defect in the Trust Agreement arises because the trust instrument is “intentionally designed” for the “Grantor” to be the deemed “Owner” for income tax purposes under Internal Revenue Code sections (IRC) 671-678 but completed for gift and estate tax purposes under IRC 2036-2038 and out of the estate for Estate Taxes. A Trust is nothing more than a private Contract between the Owner, the Trustee, for the benefit of Beneficiaries which can include the original owner, his spouse, his children, and anyone else the owner desires to include in his beneficiary stream.
