Advanced tax planning

Pass future growth to your children with little or no gift tax.

A grantor retained annuity trust lets you put appreciating assets into a trust and take back fixed payments for a set number of years. If the assets grow faster than an interest rate set by the IRS, the extra growth passes to your children with little or no gift tax.

Call (844) 544-PLAN to schedule

The short answer

A GRAT pays you an annuity for a term of years. Whatever is left at the end, the growth above the IRS rate, passes to your beneficiaries, often with no use of your exemption.

Do this first

✓Identify assets expected to grow quickly, such as a business or stock

✓Consider your health and the length of the term

✓Talk with your financial adviser about valuation

Why it matters

What it does, compared with doing nothing

Holding appreciating assets

Without a plan

All future growth is counted in your estate.

With the Grantor Retained Annuity Trust (GRAT)

Growth above the IRS rate moves to your children.

A large gift

Without a plan

A direct gift uses your exemption.

With the Grantor Retained Annuity Trust (GRAT)

A GRAT can be designed to use little or none of it.

Uncertain growth

Without a plan

If you give an asset and it drops, the gift is wasted.

With the Grantor Retained Annuity Trust (GRAT)

If the assets do not grow, they simply return to you.

How it works

How it works, step by step

You create the trust

An irrevocable trust with a fixed term, often two to ten years.

You transfer assets

Stock, a business interest, or other assets expected to grow.

You receive annuity payments

The trust pays you a fixed amount each year.

Growth builds in the trust

Returns above the IRS rate stay in the trust.

The term ends

What remains passes to your children or a trust for them.

Rolling GRATs

Short, repeated GRATs can capture growth over time.

Custom plans, flat fees

Advanced planning without the hourly bill.

Every advanced tax plan is custom, built around your assets, your family, and your goals, so the investment is quoted separately after we review your estate.

01Some firms bill tens of thousands, even hundreds of thousands, of dollars in hourly fees for this kind of work.

02We do these plans for a flat rate, quoted in writing before any work begins.

03No meter running on phone calls, emails, or revisions. You know the number up front.

Questions

Common questions

Every family is different. A 15-minute call with a licensed attorney answers the rest.

Estate tax planningBack to: A Larger Estate→

What if I die during the term?

Much or all of the assets may be counted in your estate, so the term is chosen with your health in mind.

What is the IRS rate?

The Section 7520 rate, published monthly. Lower rates make GRATs more effective.

What assets work best?

Assets expected to appreciate significantly, such as closely held business interests or growth stock.

Is there any downside if it doesn’t work?

Mainly the cost of setting it up. The assets return to you through the annuity.

Ask whether Grantor Retained Annuity Trust fits your family.

In 15 minutes, a licensed attorney will tell you what your family needs and quote the flat fee in writing.

Call to schedule