GRATs can be a stellar planning tool for the right client with the right kind of assets. Learn how to identify the high value application of this tool and how to maximize the advantages while minimizing complexity.
What is a Grantor Retained Annuity Trust ( GRAT)?
A Grantor Retained Annuity Trust, commonly referred to as a GRAT, is a powerful estate planning tool used to transfer valuable assets to family members at potentially reduced values.
The grantor, the person creating a trust, transfers property into the ownership of a trust which is then managed by a trustee for the benefit of the named beneficiaries. With a GRAT, the grantor transfers property and reserves an annual annuity from the trust, such as 5%, for a fixed timeframe. The percentage that is paid out is based on the value of the property held in the trust on the date the trust was created.
Learn more about GRATs from Scott Hamilton CEO at InKnowVIsion. www.inknowvision.com
Learn more at www.inknowvision.com