A grantor trust (also referred to as an intentionally defective grantor trust) is an irrevocable trust that allows you to reduce your taxable estate, protect assets and transfer wealth to succeeding generations without taxes.
Karen L. Brady can help you determine if a grantor trust is the right option for you and help you establish this sophisticated and complex estate planning tool. We have served the Greater Denver, JeffCo and Front Range areas for more than 20 years, and we are committed to creating long-lasting relationships with our clients.
A Powerful Estate Planning Tool
An intentionally defective grantor trust (IDGT) is established for the benefit of your children or other descendants. It is called "defective" because it allows you to continue to pay taxes on the assets, while giving them away. The grantor trust is a powerful instrument with several benefits, including:
- The value of the assets that are transferred to the trust are frozen and protected from creditors
- You do not have to pay gift taxes
- The recipients do not have to pay income taxes on the assets
- The assets are removed from your estate, allowing your heirs to enjoy lower estate taxes
- The income taxes that you pay will be deducted from your estate, reducing your estate tax burden further
- Upon death, the assets in the trust will pass directly to your heirs while avoiding probate and estate tax
An intentionally defective grantor trust is a highly sophisticated and complex legal instrument. As a Denver grantor trusts attorney, Karen L. Brady can help you create a grantor trust that meets your financial needs.
Schedule a Free Consultation With a Colorado Intentionally Defective Trusts Attorney
We have a deep understanding of the tax implications of trusts and other techniques. To arrange a meeting to discuss your case with our skilled lawyer, contact us online or call us toll free at 888-806-7304 or locally at 303-835-1811.