Intentionally Defective Grantor Trust (IDGT)

An IDGT is an irrevocable trust designed to achieve estate tax savings while allowing the grantor to continue paying income taxes on the trust’s earnings. It is considered “defective” only for income tax purposes, not for estate or gift tax purposes, and is often used in conjunction with sales or gifting strategies.

Irrevocable Life Insurance Trust (ILIT)

An ILIT is a trust that owns a life insurance policy and keeps the proceeds outside the taxable estate, protecting them from estate taxes and potential creditors.

Irrevocable Trust

A trust that cannot be modified or revoked after creation, except under specific conditions. Assets placed in an irrevocable trust are removed from the grantor’s estate, offering tax and creditor protection benefits.

Individual Trust

A trust established by a single grantor to manage assets during their lifetime and distribute them after death. It provides control, privacy, and can help avoid probate.