Web– Code Sec. 2702(b) deems the value of the grantor’s retained income interest to be $0 if the remainder passes to an applicable family member (spouse, ancestor, descendant, sibling, or spouse of any of these) unless the retained income interest in the grantor is a qualified interest. Contemporary Tax Practice Chapter 12 63 WebOne way to do this is with a grantor retained annuity trust (GRAT) or grantor retained unitrust (GRUT). These have much in common with the qualified personal residence trust. The main difference is that a GRAT or GRUT lets you transfer any asset (not just your home) out of your taxable estate. And, with a GRAT or GRUT, you receive an income ...
A.P. Briefs No. 34 December 10, 1999
WebGrantor-retained trusts are irrevocable trusts created to reduce estate taxes . With each, the grantor receives some form of income from the trust for a set amount of years, and then the property is transferred to a beneficiary free of estate taxes. These trusts are used mostly by wealthy individuals to limit estate and gift taxes because they ... WebOct 21, 2024 · A GRIT is a type of irrevocable trust, meaning the transfer of assets is permanent and can’t be reversed.This is different from a revocable trust, which allows you to change the terms as needed. How a GRIT … pd acac bf4 cas
Basic Trust Taxation Rules Guide: What You Need to Know
WebOct 21, 2024 · The key element of a grantor retained unitrust is that, because of the … WebJan 30, 2024 · A grantor retained annuity trust (GRAT) is an estate planning tool used in the United States that is structured as a trust. A trust is a fiduciary agreement for one party (trustor) to maintain the rights to hold property or assets for another party (trustee) and is commonly used when transferring assets from one party to another. GRATs, in ... WebJan 7, 2024 · Grantor Retained Annuity Trust (GRAT) and Retained Unitrust (GRUT) GRATs and GRUTs have much in common with the qualified personal residence trust. The main difference is that a GRAT or GRUT lets you transfer any asset (not just your home) out of your taxable estate. And, with a GRAT or GRUT, you receive an income, instead of … pda bethesda