Sales to Intentionally Defective Grantor Trusts (IDGTs)

A gift or sale to an intentionally defective grantor trust (IDGT) is often implemented when there is an existing FLP or LLC in place or in conjunction with the implementation of an FLP or LLC. The transaction allows for a gift or sale of assets at a reduced value to an irrevocable trust for the benefit of family members or other beneficiaries.

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