What are a couple of benefits of estate preparation with a Grantor Retained Annuity Trust (GRAT)?

What are a couple of benefits of estate preparation with a Grantor Retained Annuity Trust (GRAT)?

In the new Legal Forum Column, John S. Lueken went over several advantages of estate planning with a GRAT. Read his guidance below and put on t miss our monthly Legal Forum Column in Louisville Business First. You may find best patent attorney layer here.

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What are a few advantages of estate planning with a Grantor

Retained Annuity Trust (GRAT)?

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A GRAT is a trust created and funded by a specific (customer) which pays the client an annuity for a certain number of years. At the end of its term, the GRAT terminates and any remaining possessions are distributed to the named beneficiary with very little to no present tax expense. When drafted and funded correctly, a GRAT can transfer a considerable amount of wealth tax-free to designated beneficiaries.

Unlike many estate planning techniques, the customer can have substantial access to GRAT possessions and can substitute assets, modification beneficiaries, and otherwise customize the GRAT to suit his or her changing requirements. While the potential estate and present tax-savings are substantial, there are a number of dangers to this preparation method. An estate planning lawyer can help you reduce these threats through mindful preparation and routine change as required.

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