GRAT


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Related to GRAT: gratis
AcronymDefinition
GRATGrantor Retained Annuity Trust
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A GRAT is a vehicle an individual, or grantor, can use to transfer property.
Meet the Annuity Trust on Bernie Sanders' Hit List
While the grantor must survive the term of the GRAT to reap any estate tax benefits, the biggest disadvantage of a GRAT is that any generation-skipping transfer (GST) tax exemption may not be allocated to the GRAT until the end of the GRAT's term (see Sec.
Consider combining the tax benefits of a preferred family limited partnership with a GRAT
GRATs are typically funded with a gift of assets that are expected to appreciate in value, which then freezes the value of the assets for estate and gift tax purposes.
Protecting windfalls: GRATs versus dynasty trusts
If the grantor structures the GRAT trust for 5 years, the grantor must live 5 years and one day; the grantor must outlive the trust period.
Resource article: transferring the business
There are ways to mitigate the risk of the grantor's failure to survive the specified GRAT term.
GRATs: the time is now: Grantor Retained Annuity Trusts, or GRATs, are having a moment. Here's why estate tax changes and low rates are making these products so appealing--and what you need to know when considering them for clients
When the IRC 7520 rate drops, as it has in recent months, grantors can reimburse themselves less during the GRAT term.
Eyeing alternatives to the short-term GRAT
Example 1: Sheila Simmons transfers stock worth $500,000 to a GRAT.
Year-end estate tax planning
GRATs are very short-term trusts (usually two to five years in duration) that thrive in low-interest environments.
Back to the future: estate planning for 2010 and beyond: estate planners look for ways to use this year's expiration of the estate tax and other byproducts of Congressional disarray to their clients' advantage
10-Year GRAT and 2-Year Rolling GRATs Median Wealth Advantage of a Taxable Gift, Year 10 Per $10 Million Starting Assets (Dollars in Millions) 55% Estate Tax Rate 45% Estate Tax Rate 10-Year GRAT $4.
Investment opportunity amid tax uncertainty: why paying more taxes in 2010 may be wise financial planning
For federal tax purposes the GRAT is considered a grantor trust, meaning that the grantor pays taxes on all trust income.
Grantor Retained Annuity Trust (GRAT)
By increasing annuity payments each year of the GRAT term, payments can be minimized in early years, leaving more principal in the GRAT for a longer period of time and allowing the principal to generate additional appreciation.
Estate planning during turbulent times
In a GRAT, the grantor retains a right to payment of a fixed amount for a fixed period of years.
Chapter 26: Grantor retained interest trusts (GRAT, GRUT, QPRT)
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