This type of trust can be established to benefit your spouse, children, grandchildren and other descendants. However, it may be more appropriate in some situations than others. Getting to know the details of what an IDGT is and how it works can help you decide if it makes sense for you.
A constructive trust isn’t a trust in the traditional sense. For example, if you were creating a revocable living trust there are certain steps you’d need to take, including drawing up the trust document, naming a trustee, choosing beneficiaries and transferring property or other assets to the trust. This type of trust could be used to manage your assets during your lifetime and beyond, on behalf of your beneficiaries.