Grantor Retained Income Trust(redirected from grit)
Also found in: Dictionary, Thesaurus, Medical, Acronyms, Idioms, Encyclopedia, Wikipedia.
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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved