How an IDGT Builds a Tax-Free Dynasty
October 12, 2026
A dynasty IDGT combines several advanced estate planning strategies into one multigenerational structure: an intentionally defective grantor trust, generation-skipping transfer tax exemption, discounted asset transfers, and an installment sale designed to shift future appreciation outside the taxable estate.
The structure begins with an irrevocable grantor trust established in a jurisdiction that permits long-duration or perpetual trusts. The grantor makes an initial seed gift to the trust and allocates GST exemption to that transfer so the trust can be fully protected from generation-skipping transfer tax.
