1. In the past, an irrevocable trust that was deemed a grantor trust for income tax purposes was considered “defective”. For that reason, some commentators refer to an irrevocable grantor trust as a “defective grantor trust” (“DGT”) or an “intentionally defective grantor trust” (“IDGT”), but I dislike that term because there is nothing “defective” about it. It is simply a grantor trust that was intentionally designed to be so.