Grantor Retained Annuity Trust (GRAT): Definition and Example A GRAT is a form of irrevocable trust that’s not intended to last through the lifetime of the person who establishes and funds it GRATS have limited lifespans of a certain number of years
What is a grantor retained annuity trust (GRAT)?| Fidelity A GRAT essentially freezes a portion of an estate’s value today while shifting the appreciation of those assets to beneficiaries potentially free of estate and gift taxes The initial transfer, plus some interest, are returned to the grantor over the term of the trust
Grantor retained annuity trust - Wikipedia A grantor-retained annuity trust (commonly referred to by the acronym GRAT) is a financial instrument commonly used in the United States to make large financial gifts to family members without paying a U S gift tax
Grantor Retained Annuity Trusts | Chase Grantor retained annuity trusts (GRATs) can serve as an efficient way to transfer wealth with little or no gift tax liability
Your Guide to Grantor Retained Annuity Trusts (GRATs): A Thoughtful Way . . . What is a GRAT? A GRAT is a type of trust you can create and fund with assets from your portfolio The trust has a predefined term, usually at least two years, with a regular payment schedule for returning assets back to the creator of the trust, known as the grantor
What Is a Grantor Retained Annuity Trust (GRAT)? - The Balance Here is a general overview of how a GRAT works: The trustmaker grantor transfers specific assets into the name of the GRAT and, as the name suggests, retains the right to receive an annual annuity payment for a certain number of years
Grantor Retained Annuity Trust (GRAT) 101: Top 10 Questions Answered What Is A Grantor Retained Annuity Trust (GRAT)? A Grantor Retained Annuity Trust (GRAT) is an irrevocable trust that allows the grantor (the person who creates the trust) to transfer assets to beneficiaries while retaining the right to receive annuity payments for a specific period
Grantor Retained Annuity Trust (GRAT) - What Is It, Examples A Grantor Retained Annuity Trust (GRAT) is a tax-efficient strategy, enabling individuals to pass their estate to beneficiaries without incurring taxes Its primary aim is to facilitate the tax-free transfer of property or wealth to heirs or family members