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GRATGrantor Retained Annuity Trust
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* If the GRAT has interests in more than one passthrough entity, it is preferable to use ownership interests in the entity with the lowest growth potential to pay the annuity back to the grantor.
If the grantor dies during the term of the GRAT, then the property remaining in the GRAT is included in the grantor's estate for tax purposes, he explained.
GRATs. The GRAT is an irrevocable trust in which the grantor retains the right to receive fixed payments payable at least annually for life or for a term of years (see chart, page 71).
If an individual decided not to purchase a substitute summer home, then a portion of the estate planning benefits would be lost whether the proceeds are distributed back to the grantor or converted to a GRAT, because in either scenario, he would be forced to take back some of the property that had been given away.
The goal is often to structure the GRAT so that the client's retained interest equals the fair market value of the property at the time it is transferred to the GRAT.
The initial run of the project was a strong collaboration between GrAT and the Palawan Council for Sustainable Development (PCSD) that enabled tourism small and medium enterprises (SMEs) in Palawan to switch from fossil fuel to renewable energy.
A GRAT is a vehicle an individual, or grantor, can use to transfer property.
Measuring the grateful trait: Development of the revised GRAT. Paper presented at the Annual Convention of the Western Psychological Association, Vancouver, British Columbia, Canada.
Given the current historically low interest rates, many high-net-worth clients have looked at the estate tax benefits of a short-term grantor retained annuity trust (GRAT).
A GRAT must last for a specified term of years -- not the lifetime of the grantor.