Arizona Grantor Retained Annuity Trust

• Category: Trusts - Misc.
• State: Multi-State
• Control #: US-13197BG
• Format: Word; Rich Text

Description

This form is used for a grantor retained annuity trust. An Arizona Granter Retained Annuity Trust (GREAT) is a special type of trust established in Arizona that allows individuals to transfer assets to a trust while retaining an annuity interest for a specified period. This type of trust is often utilized for estate planning purposes, allowing individuals to pass on their wealth to future generations while minimizing estate taxes. The Arizona GREAT works by the granter (the person creating the trust) transferring assets, such as stocks, real estate, or other investments, into the trust. The granter then receives fixed annuity payments from the trust for a predetermined number of years. At the end of the annuity term, any remaining assets in the trust pass to the designated beneficiaries, typically children or grandchildren, free of estate taxes. There are different types of Arizona Granter Retained Annuity Trusts based on the length of the annuity term and the specific rules governing the trust. These include: 1. Conventional GREAT: This is the most common type of GREAT, where the granter receives fixed annual annuity payments throughout the trust term. 2. Zeroed-Out GREAT: In this type, the annuity payments are set in a way that the present value of the annuity interest is nearly equal to the value of the assets transferred into the trust. This arrangement helps to reduce or eliminate any taxable gift and allows for the transfer of any appreciation of the assets beyond the annuity payments. 3. Multigrain: Here, the granter establishes multiple Grants with different annuity terms to take advantage of different asset growth rates and to further optimize tax planning strategies. 4. Rolling GREAT: This type of GREAT involves a series of consecutive Grants, wherein the annuity interest from the previous GREAT is transferred into a new GREAT for an additional term. This approach enables the granter to maintain control over the assets and continue enjoying annuity payments for an extended period while transferring wealth to beneficiaries. 5. Charitable GREAT: This variation of a GREAT allows for the granter to designate a charitable organization as the remainder beneficiary. It provides potential estate and income tax benefits while also making a significant charitable contribution. Overall, an Arizona Granter Retained Annuity Trust is a powerful estate planning tool that can help individuals transfer assets to their loved ones while minimizing taxes. Consulting with an estate planning attorney or financial advisor is recommended to determine the most advantageous type of GREAT based on individual circumstances and goals.

An Arizona Granter Retained Annuity Trust (GREAT) is a special type of trust established in Arizona that allows individuals to transfer assets to a trust while retaining an annuity interest for a specified period. This type of trust is often utilized for estate planning purposes, allowing individuals to pass on their wealth to future generations while minimizing estate taxes. The Arizona GREAT works by the granter (the person creating the trust) transferring assets, such as stocks, real estate, or other investments, into the trust. The granter then receives fixed annuity payments from the trust for a predetermined number of years. At the end of the annuity term, any remaining assets in the trust pass to the designated beneficiaries, typically children or grandchildren, free of estate taxes. There are different types of Arizona Granter Retained Annuity Trusts based on the length of the annuity term and the specific rules governing the trust. These include: 1. Conventional GREAT: This is the most common type of GREAT, where the granter receives fixed annual annuity payments throughout the trust term. 2. Zeroed-Out GREAT: In this type, the annuity payments are set in a way that the present value of the annuity interest is nearly equal to the value of the assets transferred into the trust. This arrangement helps to reduce or eliminate any taxable gift and allows for the transfer of any appreciation of the assets beyond the annuity payments. 3. Multigrain: Here, the granter establishes multiple Grants with different annuity terms to take advantage of different asset growth rates and to further optimize tax planning strategies. 4. Rolling GREAT: This type of GREAT involves a series of consecutive Grants, wherein the annuity interest from the previous GREAT is transferred into a new GREAT for an additional term. This approach enables the granter to maintain control over the assets and continue enjoying annuity payments for an extended period while transferring wealth to beneficiaries. 5. Charitable GREAT: This variation of a GREAT allows for the granter to designate a charitable organization as the remainder beneficiary. It provides potential estate and income tax benefits while also making a significant charitable contribution. Overall, an Arizona Granter Retained Annuity Trust is a powerful estate planning tool that can help individuals transfer assets to their loved ones while minimizing taxes. Consulting with an estate planning attorney or financial advisor is recommended to determine the most advantageous type of GREAT based on individual circumstances and goals.