WSJ: The IRS Is Cracking Down on a Favorite Way the Ultrawealthy Pass On Money
Grantor retained annuity trusts (GRATs) are a longstanding staple of high-end estate planning.
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Grantor retained annuity trusts (GRATs) are a longstanding staple of high-end estate planning.
The basic structure is well-traveled: a grantor transfers appreciating assets to an irrevocable trust, retains an annuity for a fixed term, and—if the assets outperform the rate on the annuity—shifts excess...
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The useful part
Grantor retained annuity trusts (GRATs) are a longstanding staple of high-end estate planning. The basic structure is well-traveled: a grantor transfers appreciating assets to an irrevocable trust, retains an annuity for a fixed term, and—if the assets outperform the rate on the annuity—shifts excess appreciation to beneficiaries with comparatively little gift-tax cost.
Details worth keeping
The basic structure is well-traveled: a grantor transfers appreciating assets to an irrevocable trust, retains an annuity for a fixed term, and—if the assets outperform the rate on the annuity—shifts excess appreciation to beneficiaries with comparatively little gift-tax cost.
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