Blog: Opinions & Observations

Grantor Retained Annuity Trusts (“GRATs”) - January 2012

January 05, 2012

A Grantor Retained Annuity Trust (commonly called a “GRAT”) is a special trust used to pass ownership of assets to children or other family members after a specified number of years.  Potentially, a GRAT can achieve significant gift tax savings for the grantor, as well as remove the assets from the grantor’s gross estate for estate tax purposes.  GRATs can perform particularly well when the valuation rate, known as the 7520 rate, is lower—and those rates...