Illinois Grantor Retained Annuity Trust

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State:
Multi-State
Control #:
US-13197BG
Format:
Word; 
Rich Text
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Description

This form is used for a grantor retained annuity trust. Illinois Granter Retained Annuity Trust (GREAT) is an estate planning tool that allows individuals to transfer assets while still receiving an annual annuity payment for a specified period of time. This trust type is commonly used by Illinois residents who wish to minimize their estate tax liabilities and ultimately pass on wealth to future generations. The Illinois GREAT functions by establishing a trust, with the granter named as the annuitant. The granter transfers assets, such as stocks, real estate, or closely-held business interests, into the trust while retaining the right to receive a fixed annuity payment annually for a predetermined term. At the end of the specified annuity term, any remaining assets in the trust are distributed to the beneficiaries, typically family members or loved ones, with minimal or no gift or estate tax consequences. There are several types of Illinois Grants, each with its own unique features and benefits: 1. Standard GREAT: This is the most common type of GREAT and allows the granter to transfer assets with a retained annuity payment for a specific term. The annuity payment is calculated using the IRS's Section 7520 rate, which is based on the month of the GREAT creation. 2. Zeroed-Out GREAT: In a zeroed-out GREAT, the annuity payment is set at a level that essentially reduces or eliminates any potential gift tax. The granter aims to transfer the appreciation of assets without triggering additional tax liabilities. 3. Rolling GREAT: A rolling GREAT involves creating multiple Grants, with each trust succeeding the previous one. By doing so, the granter keeps transferring assets while maintaining the ability to retain the annuity payment stream for an extended period. 4. Charitable GREAT: This type of GREAT includes a charitable organization as one of the beneficiaries, allowing the granter to receive an annuity payment while also making a charitable contribution in a tax-efficient manner. Illinois residents interested in establishing a Granter Retained Annuity Trust should consult with an experienced estate planning attorney who can guide them through the specific requirements and intricacies of Illinois law. By utilizing this trust type, individuals can plan effectively for the future, mitigate tax liabilities, and preserve wealth for their loved ones.

Illinois Granter Retained Annuity Trust (GREAT) is an estate planning tool that allows individuals to transfer assets while still receiving an annual annuity payment for a specified period of time. This trust type is commonly used by Illinois residents who wish to minimize their estate tax liabilities and ultimately pass on wealth to future generations. The Illinois GREAT functions by establishing a trust, with the granter named as the annuitant. The granter transfers assets, such as stocks, real estate, or closely-held business interests, into the trust while retaining the right to receive a fixed annuity payment annually for a predetermined term. At the end of the specified annuity term, any remaining assets in the trust are distributed to the beneficiaries, typically family members or loved ones, with minimal or no gift or estate tax consequences. There are several types of Illinois Grants, each with its own unique features and benefits: 1. Standard GREAT: This is the most common type of GREAT and allows the granter to transfer assets with a retained annuity payment for a specific term. The annuity payment is calculated using the IRS's Section 7520 rate, which is based on the month of the GREAT creation. 2. Zeroed-Out GREAT: In a zeroed-out GREAT, the annuity payment is set at a level that essentially reduces or eliminates any potential gift tax. The granter aims to transfer the appreciation of assets without triggering additional tax liabilities. 3. Rolling GREAT: A rolling GREAT involves creating multiple Grants, with each trust succeeding the previous one. By doing so, the granter keeps transferring assets while maintaining the ability to retain the annuity payment stream for an extended period. 4. Charitable GREAT: This type of GREAT includes a charitable organization as one of the beneficiaries, allowing the granter to receive an annuity payment while also making a charitable contribution in a tax-efficient manner. Illinois residents interested in establishing a Granter Retained Annuity Trust should consult with an experienced estate planning attorney who can guide them through the specific requirements and intricacies of Illinois law. By utilizing this trust type, individuals can plan effectively for the future, mitigate tax liabilities, and preserve wealth for their loved ones.

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Illinois Grantor Retained Annuity Trust