Harnessing the Power of Intentionally Defective Grantor Trusts (IDGTs) with One Bridge Wealth Management

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Harnessing the Power of Intentionally Defective Grantor Trusts (IDGTs) with One Bridge Wealth Management

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Estate planning is a crucial aspect of financial management, ensuring that individuals can effectively transfer wealth to their loved ones while minimizing tax liabilities. Among the various estate planning strategies available, Intentionally Defective Grantor Trusts (IDGTs) stand out as a powerful tool for achieving these objectives. In this article, we'll explore the concept of IDGTs and how they can be utilized effectively with the help of One Bridge Wealth Management, St. Louis Financial Advisors.

Understanding Intentionally Defective Grantor Trusts (IDGTs)

An Intentionally Defective Grantor Trust (IDGT) is a type of irrevocable trust designed to remove assets from an individual's estate for estate tax purposes while allowing the individual to retain certain rights and benefits associated with the trust. Despite its name, the "defective" nature of the trust refers to specific provisions that cause it to be disregarded for income tax purposes, making the grantor responsible for income taxes on trust income.

Benefits of IDGTs

  1. Estate Tax Reduction: By transferring assets to an IDGT, individuals can remove those assets from their taxable estate, reducing potential estate tax liabilities upon their passing. This can be particularly advantageous for individuals with large estates subject to estate taxes.
  2. Asset Protection: Assets held in an IDGT are generally protected from creditors, providing an added layer of asset protection for beneficiaries.
  3. Flexibility and Control: Despite being an irrevocable trust, IDGTs offer flexibility and control for the grantor. The grantor can retain certain powers, such as the ability to substitute assets in the trust or control investment decisions, while still achieving estate planning objectives.
  4. Income Tax Benefits: The "defective" nature of an IDGT results in the grantor being responsible for income taxes on trust income, effectively allowing for tax-free wealth transfer to beneficiaries.

Leveraging IDGTs with One Bridge Wealth Management

At One Bridge Wealth Management, we understand the complexities of estate planning strategies and the importance of implementing tools that align with our clients' financial goals. Our experienced team of financial advisors specializes in utilizing strategies like IDGTs to help clients preserve and transfer wealth efficiently.

We work closely with our clients to assess their unique financial circumstances and objectives, helping guide them toward estate planning strategies to address their specific needs.


Intentionally Defective Grantor Trusts (IDGTs) offer a powerful solution for individuals looking to minimize estate tax liabilities while maintaining control and flexibility over their assets.

Contact us today to learn more about how IDGTs and other sophisticated estate planning tools can help you achieve your wealth transfer objectives and secure your financial legacy.

Schedule a Strategy Session Today


Commonwealth Financial Network® and One Bridge Wealth Management do not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.