What is a Grantor Retained Annuity Trust (GRAT) and Grantor Retained Unitrust (GRUT)?
You can establish a GRAT or GRUT assets such as a stock, a business, real estate, etc., for a fixed number of years while still retaining the income. If you do not live until the set period expires, the asset is included in your estate. After the set period expires, the asset is passed to your children at a discounted value since they would not be receiving the asset until some future period. This enables you to remove investment assets from your estate while allowing you to retain the income for a fixed period.
