Grantor Retained Income Trust

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Grantor Retained Income Trust (GRIT)

A tax-saving trust in which a grantor transfers property to a beneficiary, but receives income until termination, at which time the beneficiary begins receiving the income.

Grantor Retained Income Trust

A trust in which the grantor places some assets for the beneficiary, but retains the right to receive income from those assets up to a certain point, at which time the beneficiary begins to receive the income. This allows the beneficiary to receive income from the trust without being subject to the estate tax. A disadvantage is the possibility that the grantor will die before the expiration of the trust, which results in the assets transferring to the grantor's estate. In that case, the beneficiary does not receive anything. It is also called a grantor retained annuity trust.
References in periodicals archive ?
1, 2011, D transfers assets valued at $2 million to a graduated grantor retained annuity trust (GRAT).
A donor therefore cannot allocate GST exemption to a grantor retained annuity trust or qualified personal residence trust--where the trust property is included in her gross estate if she dies before her retained interest in the trust terminates--until the estate tax inclusion period ends (when the grantor dies, a generation-skipping transfer occurs with respect to the property, or the grantor's retained interest in the trust expires).
Kirkland Grantor Retained Annuity Trust 2001-1 may sell up to 160,000 shares held by the trust, subject to certain predetermined minimum price conditions, for the term of one year.
Other more sophisticated techniques such as the grantor retained annuity trust and the family limited partnership could also be useful to some clients.
A QPRT converts to a grantor retained annuity trust if the residence is sold and the proceeds are not reinvested in another residence within the shorter of two years or the remaining term of the trust.
Burrell 2000 Grantor Retained Annuity Trust and the Judith M.
WITH A GRANTOR RETAINED ANNUITY TRUST, the senior member transfers the business to a trust and retains an income interest for a specified number of years.
47, and 800,000 shares in a Grantor Retained Annuity Trust.
Harry Knowles Grantor Retained Annuity Trust, with C.