Grantor Retained Annuity Trust (GRAT)

Why Use Our GRAT Template?

Minimize Gift Taxes While Keeping Control

• Attorney-Drafted Structure: Professionally designed to reflect IRS requirements for GRATs.

• Keeps You in Control During the Term: You (the grantor) receive fixed annuity payments for the duration of the trust.

• Transfers Growth Tax-Efficiently: After the GRAT term, excess appreciation passes to your beneficiaries—potentially gift-tax free.

Ideal for Business Interests, LLC Shares, and Investment Portfolios

• Perfect for LLC Owners: Use to transfer membership interests while freezing the taxable value.

• Flexible Duration and Payouts: Set the trust term and annuity amount that works for your plan.

• Supports High-Value Growth Assets: Especially effective when asset appreciation outpaces IRS interest rate assumptions (Section 7520 rate).

Easy to Customize and Implement

• Editable Word Format: Fill in grantor/trustee names, trust term, annuity terms, and assets to be transferred.

• IRS-Compliant Structure: Built with key GRAT elements to help meet regulatory safe harbors.

• Execution Ready: Signature blocks included with trustee acceptance section.

How to Purchase and Use the GRAT Template

🛒 Step 1: Complete Your Purchase ($35 per Template)

Add the GRAT template to your cart and complete checkout. You’ll receive the editable document instantly via email.

📥 Step 2: Customize in Microsoft Word

Open the file and enter trust details, including grantor, trustee, annuity payment terms, and beneficiaries.

👥 Step 3: Review with Your Estate Planning Advisor

Ensure your GRAT aligns with your overall estate strategy, especially if you're transferring LLC membership interest or high-growth assets.

✍️ Step 4: Sign, Fund, and Administer

Execute the trust, fund it with the chosen asset, and begin issuing the scheduled annuity payments.

🎯 Ready to Transfer Wealth—Without the Tax Hit?

Download the GRAT template and implement a powerful estate planning move today.

Key Features of the GRAT Template

• Grantor Retains Annuity Payments: You receive a fixed amount annually during the GRAT term.

• Zeroed-Out GRAT Option: Set annuity payments to offset the entire value of the transfer for gift tax minimization.

• IRS 7520 Rate Compliance: Optimized to work with IRS guidelines for present-value calculations.

• Beneficiary Distribution Clause: Transfers remaining trust assets after the annuity term ends.

• Revocable if Needed: You can adjust or cancel before funding (once funded, it becomes irrevocable).

Benefits of a Grantor Retained Annuity Trust

Estate Tax Efficiency

• Minimizes or Eliminates Gift Tax: Most GRATs are structured to “zero out” gift tax while still transferring appreciation.

• Shields Future Growth: High-growth assets pass to heirs with minimal tax burden.

• IRS-Approved Method: Utilizes an established tax code provision for wealth transfer.

Great for Business Owners and Investors

• Works with LLCs, Startups, or Stocks: Transfer shares or membership interests today while retaining income.

• Protects Family Wealth: Locks in value today and moves appreciation outside your estate.

• Flexible Setup: Choose your trust term, annuity percentage, and asset contribution.

Quick Look: Grantor Retained Annuity Trust (GRAT)

Frequently Asked Questions

Q: What is a GRAT?

A: A Grantor Retained Annuity Trust is an irrevocable trust that allows the grantor to retain an annuity for a fixed period, with remaining assets passing to beneficiaries at the end—often with little or no gift tax.

Q: When is a GRAT most effective?

A: When you contribute assets that are likely to appreciate faster than the IRS’s assumed rate (Section 7520 rate), such as business interests, startup equity, or high-growth investments.

Q: Can I use this to transfer LLC membership interest?

A: Yes. This template is ideal for transferring business ownership while locking in value and minimizing taxes.

Q: Is this template compliant with IRS rules?

A: It’s built around the IRS’s GRAT safe harbor provisions. Always consult your estate planning attorney for full compliance based on your specific situation.

Q: What happens if I pass away during the GRAT term?

A: The remaining assets revert to your estate, reducing or eliminating the tax benefit. That’s why choosing the right term length is important.

Why This Agreement Matters

• Preserves Wealth for Your Family: Moves appreciation out of your estate—legally and strategically.

• Reduces Tax Exposure: Keeps your gifting within legal, tax-advantaged limits.

• Complements Your LLC and Estate Plan: Especially effective when used alongside other succession documents.

• Professional and Easy to Customize: Powerful strategy made easy with a plug-and-play format.