Broker Check

Advanced Estate Planning: Shifting Appreciation

A Grantor Retained Annuity Trust (or GRAT) is a trust you would establish to minimize estate tax on highly appreciating assets. The structure is as follows:

  1. You transfer assets to a GRAT you set up.

  2. Over a certain term of years that you establish, you receive assets back from the GRAT equal in value to what you transferred, plus a relatively small rate of return required by the IRS.

  3. Any value above what you get back from the GRAT (i.e., the appreciation) stays in trust for your spouse/children.

Have a Question?

Thank you!

Click below to read more advanced estate planning strategies.

Advanced Estate Planning