GRANTOR RETAINED ANNUITY TRUST. (GRAT). By. Leo J. Cushing, Esq., CPA , LLM. Cushing & Dolan, P.C.. Attorneys at Law. 375 Totten Pond Road, Suite 200 ... II. EXAMPLE. Assume a $10,000,000 asset. The grantor is age 60. The grantor is considering a 10 year. GRAT. May, 2011, IRC § 7520 Rate = 3.00% ( 120% ...
In a grantor retained annuity trust (GRAT), a grantor transfers assets into an irrevocable ... September 2011. 2 IRC Section 2036. 3 A Grantor Trust is one that triggers the Grantor Trust Rules (IRC Sections 671-678). 4 Internal Revenue Code Section 2702(b) defines a “Qualified interest” as: (1) any interest which consists of ...
The Grantor Retained Annuity Trust (GRAT) is a popular method of transferring wealth to children without incurring gift or estate taxes.
A Grantor Retained Annuity Trust (GRAT) is a tax efficient, well established, technique for transferring assets (including business interests) to the next generation. In a Grantor Retained Annuity Trust (GRAT) the grantor transfers an asset to an irrevocable trust in return for an annuity interest, typically for a term of years.
Oct 22, 2011 ... Grantor Retained Annuity Trusts. A. In General. 1. Overview of GRATs. Section 2702 of the Internal Revenue Code. 3 specifically authorizes the grantor retained annuity trust, or "GRAT". A GRAT is a trust in which the grantor contributes assets to the trust and retains the right to receive an annuity for a term of ...