One Way to Secure Your Child’s Inheritance in an Uncertain Tax Future

Sometimes it might take an IDGT, or intentionally defective grantor trust, to preserve generational wealth. But how does that work?

A clearly wealthy woman sits by the pool with a view of the beach.
(Image credit: Getty images)

As high-net-worth clients age, they become more focused on how their accumulated wealth will be distributed to their heirs. Naturally, most parents want their children to inherit as much wealth as possible, which drives a quest to shield those heirs from unnecessary taxation when they inherit.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Samuel V. Gaeta, CFP®
Principal, Director of Financial Planning, Defined Financial Planning

As Principal and Director of Financial Planning, Sam Gaeta helps clients identify financial goals and make plan recommendations using the five domains of financial planning — Cash Flow, Investments, Insurance, Taxes and Estate Planning. He is responsible for prioritizing clients' financial objectives and effectively implementing their investment plans and actively monitors the ever-changing nature of clients' financial and investment plans.