Grantor Retained Annuity Trust (GRAT): Definition and Example What Is a Grantor Retained Annuity Trust (GRAT)? A grantor retained annuity trust (GRAT) is an estate planning tool used to minimize taxes on large financial gifts made to family members
What is a grantor retained annuity trust (GRAT)?| Fidelity What is a GRAT? A GRAT is a trust created so that individuals and families can move wealth to heirs while using little, if any, of their lifetime federal gift and estate-tax exclusion An individual would work with an attorney to set up an irrevocable trust and transfer assets into it
What Is a Grantor Retained Annuity Trust? - CPA Solutions A Grantor Retained Annuity Trust (GRAT) is an irrevocable trust designed to transfer appreciating assets to heirs while minimizing or eliminating gift and estate taxes The grantor contributes assets to the Grantor Retained Annuity Trust and receives fixed annuity payments for a set term, typically 2 to 10 years
Grantor Retained Annuity Trusts | Chase During the GRAT term, the grantor is the only beneficiary of the trust, and the annuity payments are the only distributions made from the GRAT
Understanding Grantor Retained Annuity Trust (GRAT) A Grantor Retained Annuity Trust (GRAT) is an estate planning tool that allows tax-efficient wealth transfer by providing the grantor with annuity payments and potentially tax-free asset transfers to beneficiaries A GRAT can significantly reduce or eliminate gift estate taxes on transferred assets
Grantor Retained Annuity Trusts (GRATs): What are They? The Grantor Retained Annuity Trust ("GRAT") is one of the most powerful estate planning tools available to high–net–worth families to efficiently transfer wealth to the next generation
Grantor-Retained Annuity Trust (GRAT) | Northwestern Mutual A grantor-retained annuity trust (GRAT), also called a GRAT trust, is a type of irrevocable trust that can be used to pass assets onto your beneficiaries in a tax-efficient manner