15 minute
telephone call

Schedule a complimentary 15 minute telephone call to discuss your planning needs.

New Blogs

The Grantor Retained Annuity Trust (“GRAT”) is a type of trust specifically authorized by there gulations interpreting the Internal Revenue Code. This type of irrevocable trust permits you to make a lifetime gift of assets to an irrevocable trust in exchange for a fixed payment stream for aspecified term of years.

At the end of the term of years, the balance of the trust property (the “remainder interest”) is transferred to the beneficiaries of your choice, typically children or grandchildren. The Grantor Retained Annuity Trust reduces estate taxes by removing assets from those that are counted inyour estate for estate tax purposes.

The gift for federal gift tax purposes is based upon IRS published interest rates at the time of the transfer. This rate does not take into consideration any future appreciation in the value of the property and therefore you can reduce the value of the gift to as low as zero. The Grantor Retained Annuity Trust is particularly suited for assets that are expected to grow rapidly in value and property subject to discounts, such as interests in closely held businesses or limited liability companies.

During the term of years of the trust you must be paid a fixed amount annually or more frequently (for example, quarterly). The term of years and the amount of the payment are fixed at the time you create the trust (determined by you with the assistance of your legal and financial advisors).

During the term of years of the trust you can be the sole trustee or a cotrustee of the trust with complete control over all decisions of the trust and the assets in the trust.


Family Limited Partnerships

Gift Trusts for Family Members

Lifetime Family Trusts

Grantor Retained Annuity Trust

Charitable Remainder Trust

Private Foundations

Sale to Grantor Trust

Beneficiary Defective Trust