San Jose Estate Planning Lawyer

Protecting your Assets & Preserving Your Legacy

The use of intentionally defective irrevocable trusts (IDITs), also referred to as intentionally defective grantor trusts (IDGTs), is part of advanced estate planning. It is a creative way to protect assets and preserve wealth, yet still allow the grantor to maintain a controlling interest in trust-owned assets.


Although intentionally defective irrevocable trusts are not a common part of estate planning, they can be an invaluable tool for protecting families, homes, stock portfolios & family-owned businesses.


What is an IDIT / IDGT?

An intentionally defective irrevocable trust is not literally defective. It is a form of irrevocable trust designed to give the grantor, or trust maker, ownership rights or control over a business or other asset for income tax purposes, while still preserving and protecting the business for estate tax purposes.

IDITs/IDGTs are established in order to remove assets from the trust maker's taxable estate. At the same time, because the assets are no longer owned by the trust maker, these types of trusts are smart for asset protection purposes. Additionally, future appreciation will then occur inside the trust and outside the reach of the trust maker's creditors.

Get Help Preparing an IDIT or IDGT

The preparation of intentionally defective irrevocable trusts, or intentionally defective grantor trusts, can be complicated and unless done right, could potentially lead to complications in your beneficiaries getting the estate and assets you intended them to receive.

If you have questions about whether IDITs or IDGTs would benefit you and your estate, contact a San Jose estate planning attorney at WealthPLAN today. They will review and evaluate your situation in order to help you determine the best options for protecting your assets, providing for your family and meeting your estate planning needs.

Estate Planning Attorney Serving San Jose

We understand how important it is to ensure your estate is fully protected so that your beneficiaries receive the assets you intend them to receive, without being burdened or severely impacted by estate taxes or other creditors. Proper estate planning is crucial in effective protection and preservation of the estate you have worked to build.

With over 30 years experience in estate planning, advanced estate planning, tax, trust administration and litigation, WealthPLAN is who you want preparing your intentionally defective irrevocable trust or other estate planning documents. They are there to evaluate your needs and advise you of the legal options available which can help reduce the exposure of your estate to taxes, thus allowing your beneficiaries to receive your assets and estate as you intend.


Wondering if an IDIT or IDGT is right for you? Contact a San Jose estate planning lawyer at thefirm today to discuss your options!


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