Is Now the Right Time to Create a Grantor Retained Annuity Trust?

Is Now the Right Time to Create a Grantor Retained Annuity Trust?
A grantor-retained annuity trust is one of various trusts that can reduce certain taxes. William Potter/Shutterstock
Javier Simon
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Wealthy families that want to pass on assets they expect to significantly increase in value may want to consider a grantor retained annuity trust (GRAT).

A GRAT is a type of irrevocable trust that makes regular annuity payments from assets transferred to the trust creator or grantor. What’s left after the trust’s term is passed on to heirs, without certain taxes.

Javier Simon
Javier Simon
Author
Javier Simon is a freelance personal finance writer for The Epoch Times. He specializes in retirement planning, investing, taxes, fintech, financial products and more. His work has been featured by major publications including Fox Business, The Motley Fool, NerdWallet, and Money Magazine.