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This document serves as a trust declaration outlining the establishment of a Grantor Retained Annuity Trust (GRAT), detailing the roles and responsibilities of the grantor and trustee, the irrevocability
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How to fill out grantor retained annuity trust

01
Determine the assets to be placed in the GRAT.
02
Choose the term for the annuity, which is typically 2-10 years.
03
Calculate the annuity payment amount based on IRS tables.
04
Draft the GRAT document with the help of an estate planning attorney.
05
Fund the GRAT by transferring the chosen assets into it.
06
File Form 706 to report the gift to the IRS, if required.

Who needs grantor retained annuity trust?

01
Individuals looking to reduce their estate tax liability.
02
People with appreciating assets who wish to transfer wealth to heirs.
03
Those who want to retain income from the trust assets for a specific period.

What is Grantor Retained Annuity Trust Form?

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A Grantor Retained Annuity Trust (GRAT) is an irrevocable trust that allows the grantor to receive annuity payments for a specific period of time while minimizing the gift tax liability when transferring assets to beneficiaries. After the annuity period, the remaining assets are passed on to the beneficiaries.
The grantor of the trust is typically responsible for filing any necessary tax returns associated with the GRAT, particularly Form 709 for gift taxes, if applicable.
To fill out a GRAT, one must prepare a trust document that outlines the terms, including the annuity payment amount, the duration of the trust, and the beneficiaries. It is advisable to consult a tax or legal professional to ensure compliance with relevant laws and tax implications.
The purpose of a GRAT is to allow the grantor to transfer wealth to beneficiaries with reduced gift tax exposure, while still retaining income from the trust assets during the annuity period.
Information that must be reported includes the value of the trust assets, the annuity payment amounts, the duration of the annuity period, the names of beneficiaries, and the grantor's tax identification number if applicable.
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