Hawaii Granter Retained Annuity Trust (GREAT) is a legal and financial tool used in estate planning to transfer assets to beneficiaries while potentially minimizing estate and gift taxes. It allows the granter (the person creating the trust) to retain an annuity payment for a specified period, after which the remaining trust assets pass to the designated beneficiaries. Keywords: Hawaii Granter Retained Annuity Trust, GREAT, estate planning, transfer assets, beneficiaries, estate taxes, gift taxes, annuity payment, trust assets. Different types of Hawaii Granter Retained Annuity Trusts include: 1. Standard GREAT: In a standard GREAT, the granter transfers assets into the trust and retains a fixed annuity payment for a pre-determined period. At the end of the term, the remaining assets pass to the beneficiaries, potentially avoiding gift taxes or reducing estate taxes. 2. Zeroed-Out GREAT: A zeroed-out GREAT is designed to reduce or eliminate gift taxes by setting the annuity payment in a way that the present value of the retained interest matches the value of assets transferred into the trust. This essentially cancels out any taxable gift, making it an effective strategy for wealth transfer. 3. Flip GREAT: A flip GREAT is a type of GREAT that offers flexibility in asset allocation. It begins as a GREAT, and if certain conditions specified in the trust agreement are met, it "flips" into another type of trust, such as a dynasty trust, giving the granter and beneficiaries further control and planning options. 4. Spousal GREAT: A spousal GREAT involves a married couple setting up two separate Grants, with each spouse acting as the granter of their respective trust. This strategy allows each spouse to utilize their individual estate tax exemptions and transfer wealth to beneficiaries while minimizing the overall tax burden. 5. Charitable Remainder GREAT: With this type of GREAT, the ultimate beneficiaries are charitable organizations. The granter receives an annuity payment during the term, while the remaining trust assets pass to the designated charities upon expiration. This approach allows for philanthropic endeavors while potentially providing the granter with income and favorable tax treatment. When considering estate planning in Hawaii, understanding the various types of Granter Retained Annuity Trusts available can be beneficial. It is essential to consult with a qualified attorney or financial advisor specializing in estate and tax planning to determine the most suitable Hawaii Granter Retained Annuity Trust strategy based on individual circumstances and goals.
Hawaii Grantor Retained Annuity Trust
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How to fill out Hawaii Grantor Retained Annuity Trust?
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