Prepared by Todd Andrews, Alan Yanowitz & Claire Langton-Yanowitz
A grantor-retained annuity trust (GRAT) is a tool to make a tax-free, low risk transfer of family wealth. This result can be achieved without parting the income from the asset for a specified term of years. The GRAT is a grantor trust for income tax purposes. A GRAT is an irrevocable trust into which the settlor transfers assets while retaining the right to receive an annuity payment for a specified term. Unlike other planning tools which are not directly sanctioned in the Internal Revenue Code, GRATs are permitted under Internal Revenue Code section 2702 and the requirements for qualification are provided in related Treasury Regulations. When the trust terminates, the GRAT’s assets are distributed to the remainder beneficiaries, which are typically the settlor’s children. The Grantor Retained Annuity Trust (GRAT) InFORMed Annotated Legal Document with eFormbook was drafted by experience attorney, to provide practitioners with valuable insight about when and how to use this estate planning tool. It includes detailed annotations which outline drafting rational, primary sources of law, and multiple alternate clauses, allowing drafters to create and customize the GRAT to best meet their client’s needs.
The companion eFormbook contains a downloadable version of the form, to give practitioners a head start at drafting.
When to Use This Form
Grantor Retained Annuity Trust Agreement
Your annotated manual provides instructions for accessing the eFormbook.
InFORMed Annotated Legal Documents are expertly drafted legal forms and documents containing annotations and helpful commentary by expert attorneys. You'll receive drafting rationales and insights from the author, along with practice tips and citations to pertinent authority. Checklists and sample language also may be provided.
Each InFORMed Annotated Legal Document comes with a companion eFormbook which is accessible through your account on the Minnesota CLE website. The eFormbook contains the unannotated version of the documents included in the manual. Don’t scan or retype the documents found in the annotated manual – save time by simply downloading the documents and fine-tuning them to suit your needs!
Once I’ve purchased an InFORMed Annotated Document that includes an eFormbook, how do I access it?
Access the eFormbook through your account on the Minnesota CLE website under My Account > eResources & Publications.
Will I always have access to my InFORMed eFormbook?
Yes, you will always have access to the eFormbook. Even if we publish an updated InFORMed book, you will still have access to the eFormbook you purchased originally. If you purchase the updated InFORMed Annotated Document, you will have access to the most up-to-date eFormbook.
Can I download the forms in my eFormbook?
Yes, and we recommend that you download all of the forms in your eFormbook so you can use them without Internet access.