Trusts
- Understanding Trusts
- Qualified Personal Residence Trust
- Qualified Terminable Interest Property Trust (QTIP)
- Grantor Retained Annuity Trust
- Wealth Replacement Trust
- Charitable Remainder Trust
- Charitable Lead Trust
- Charitable Gift Annuity
- Glossary
Grantor Retained Annuity Trust
A grantor retained annuity trust (GRAT) is an arrangement by which income-producing (or appreciating) property is transferred to a trust in exchange for the right to receive a fixed annuity amount for a specified term of years or for the life of the grantor.
Because you retain an income interest in the trust, the value of the interest transferred to beneficiaries is reduced – which may result in significant tax savings. Another benefit is that all future appreciation is transferred to beneficiaries without being subject to gift or estate tax. Any gift tax paid as a result of the transfer is removed from your estate, provided the GRAT is made more than three years before death.
Upon expiration of the term, the assets pass to beneficiaries free of estate tax on any appreciation. The payment of the remainder to the beneficiaries is not subject to gift or estate tax, because the tax was imposed when the trust was created.
Share Article:
IT IS IMPORTANT that our customers understand that products and services made available through Osaic Institutions, Inc.
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.
- ARE NOT A DEPOSIT
- ARE NOT FDIC-INSURED
- ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- ARE NOT GUARANTEED BY THE BANK
- MAY GO DOWN IN VALUE
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.