Grantor Retained Income Trust


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia.
Related to Grantor Retained Income Trust: IDGT

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 ?
Some techniques that still work after the implementation of Chapter 14 include private annuities (which never had broad appeal but do have beneficial uses in certain situations J), grantor retained income trusts for personal residences, tangible property trusts and grantor retained annuity and unitrusts.
Each of the tax services critiqued was used to determine the tax effects of a corporate guarantee of shareholder indebtedness in one instance; the use of a grantor retained income trust (GRIT)for the purpose of holding a painting in another, and the effect on a Sec.
A grantor retained income trust (GRIT) gives the income beneficiary a right to all the income that the trust corpus earns and is therefore deemed the owner of the trust income.