
Transferring ownership interests is a snap with a GRAT
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Description
Abstract: A grantor retained annuity trust, or GRAT, can provide substantial estate planning benefits. As this article explains, a GRAT is an irrevocable trust, funded by a one-time contribution of assets by the “grantor,” that pays the grantor an annuity for a specific term. When the GRAT’s term expires, the assets remaining in the trust transfer to designated beneficiaries in a manner that can be tax-advantageous.
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