Although it’s common to set up a gift trust and contribute annual exclusion gifts to it, there are other types of gifting trusts as well.

Another popular gifting trust is the IDGT (Intentionally Defective Grantor Trust). This type of trust is often used to transfer a closely held family business to others in the family and also provide creditor protection for the beneficiaries.


Yet another type of  gifting trust is the QPRT  (Qualified Personal  Residence Trust). This  trust allows the person  creating the trust the  opportunity to transfer  his home to his  children as a gift for a  value less than fair  market value on the 709 gift tax return (and affords him asset protection for the home as well).

For the charitable minded, a third type of gifting trust is a CRT (Charitable Remainder Trust). All of these types of trusts can be utilized to gain tax advantages for the Grantor’s estate all the while making a gift to benefit children, grandchildren and/or charities.

In upcoming posts, I will be discussing each of these trusts in greater detail and I will provide examples of how and why you might take advantage of each.

Feel free to call my office if you would like to setup an appointment for estate planning (760) 448-2220 or fill out our contact form. We will be more than happy to assist you!

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