Delaware 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. A Delaware Granter Retained Annuity Trust (GREAT) is a specific type of trust that allows individuals to transfer assets to beneficiaries while minimizing their estate and gift taxes. It is a popular estate planning tool used by individuals looking to preserve wealth and pass assets to future generations. The Delaware jurisdiction is particularly favorable for setting up these trusts due to its flexible laws and specific provisions. Keywords: Delaware Granter Retained Annuity Trust, GREAT, estate planning, transfer assets, beneficiaries, estate taxes, gift taxes, wealth preservation, future generations, Delaware jurisdiction, flexible laws, specific provisions. There are several types of Delaware Granter Retained Annuity Trusts, including: 1. Simple GREAT: This is the most common type of GREAT. The Granter transfers assets into the trust and retains the right to receive an annuity payment annually for a predetermined period. At the end of the trust term, any remaining assets pass to the beneficiaries, typically family members or charitable organizations. 2. Zeroed-Out GREAT: With this type of GREAT, the annuity payments are set at such a level that, after accounting for interest, there is little to no value left in the trust at the end of the term. This allows for the significant transfer of wealth to beneficiaries without incurring gift taxes. 3. Rolling GREAT: A rolling GREAT involves the creation of multiple Grants with staggered terms. As each trust term ends and the annuity payments conclude, the remaining assets are used to create a new GREAT. This allows for an ongoing transfer of assets and potential tax savings. 4. Flip GREAT: In a flip GREAT, the Granter initially sets the trust as a GREAT, but it has the option to "flip" the trust into a generation-skipping transfer (GST) trust if certain conditions are met. This allows for additional tax benefits and the preservation of assets for future generations. 5. Charitable GREAT: This type of GREAT provides an opportunity to gift assets to a charitable organization while still retaining an annuity payment for a specified term. At the end of the trust term, any remaining assets pass to the charity, providing both estate tax reduction and philanthropic benefits. By utilizing the Delaware jurisdiction for a Granter Retained Annuity Trust, individuals can take advantage of the state's favorable laws, including no state income tax on trusts and creditor protection. It is important to consult with an experienced estate planning attorney or financial advisor to determine the most suitable type of Delaware GREAT based on individual circumstances and goals.

A Delaware Granter Retained Annuity Trust (GREAT) is a specific type of trust that allows individuals to transfer assets to beneficiaries while minimizing their estate and gift taxes. It is a popular estate planning tool used by individuals looking to preserve wealth and pass assets to future generations. The Delaware jurisdiction is particularly favorable for setting up these trusts due to its flexible laws and specific provisions. Keywords: Delaware Granter Retained Annuity Trust, GREAT, estate planning, transfer assets, beneficiaries, estate taxes, gift taxes, wealth preservation, future generations, Delaware jurisdiction, flexible laws, specific provisions. There are several types of Delaware Granter Retained Annuity Trusts, including: 1. Simple GREAT: This is the most common type of GREAT. The Granter transfers assets into the trust and retains the right to receive an annuity payment annually for a predetermined period. At the end of the trust term, any remaining assets pass to the beneficiaries, typically family members or charitable organizations. 2. Zeroed-Out GREAT: With this type of GREAT, the annuity payments are set at such a level that, after accounting for interest, there is little to no value left in the trust at the end of the term. This allows for the significant transfer of wealth to beneficiaries without incurring gift taxes. 3. Rolling GREAT: A rolling GREAT involves the creation of multiple Grants with staggered terms. As each trust term ends and the annuity payments conclude, the remaining assets are used to create a new GREAT. This allows for an ongoing transfer of assets and potential tax savings. 4. Flip GREAT: In a flip GREAT, the Granter initially sets the trust as a GREAT, but it has the option to "flip" the trust into a generation-skipping transfer (GST) trust if certain conditions are met. This allows for additional tax benefits and the preservation of assets for future generations. 5. Charitable GREAT: This type of GREAT provides an opportunity to gift assets to a charitable organization while still retaining an annuity payment for a specified term. At the end of the trust term, any remaining assets pass to the charity, providing both estate tax reduction and philanthropic benefits. By utilizing the Delaware jurisdiction for a Granter Retained Annuity Trust, individuals can take advantage of the state's favorable laws, including no state income tax on trusts and creditor protection. It is important to consult with an experienced estate planning attorney or financial advisor to determine the most suitable type of Delaware GREAT based on individual circumstances and goals.