Maine Granter Retained Income Trust with Division into Trusts for Issue after Term of Years is an important estate planning tool that allows individuals to transfer assets to their beneficiaries while retaining some level of income for a specified period. This type of trust is commonly used in Maine and offers several benefits for granters. The primary objective of a Maine Granter Retained Income Trust with Division into Trusts for Issue after Term of Years is to reduce the granter's estate tax liability. By transferring assets into the trust, the granter removes them from their taxable estate, ultimately minimizing the potential tax burden on their beneficiaries. This can be particularly advantageous for individuals with substantial assets or those concerned about estate taxes. One significant feature of this type of trust is that the granter retains the right to receive income generated by the trust during the specified term. This ensures a steady stream of income for the granter, allowing them to maintain their financial security throughout the designated period. Once the specified term expires, the trust is divided into individual trusts for each named beneficiary or issue. These separate trusts are then distributed to the beneficiaries in accordance with the granter's wishes. This division allows for flexibility in distributing assets and can consider the specific needs and circumstances of each beneficiary. There may be variations of the Maine Granter Retained Income Trust with Division into Trusts for Issue after Term of Years, such as: 1. Fixed-Term Granter Retained Income Trust: This type of trust has a predetermined term, usually a specific number of years. Upon the trust's termination, the assets are divided into separate trusts for the beneficiaries. 2. Flexible-Term Granter Retained Income Trust: Unlike fixed-term trusts, flexible-term trusts allow the granter to determine the duration of the trust within certain defined limits. This enables greater flexibility and adaptability to changing circumstances or personal preferences. 3. Charitable Granter Retained Income Trust: This particular trust includes provisions to donate a portion of the trust's assets to qualified charitable organizations at the end of the term. This not only provides income to the granter but also offers potential estate tax benefits while supporting charitable causes. In conclusion, a Maine Granter Retained Income Trust with Division into Trusts for Issue after Term of Years is an estate planning tool that allows individuals to transfer assets to their beneficiaries while retaining income for a specific period. Its main advantages are reducing estate tax liability and providing income for the granter during the term. Different variations of this trust include fixed-term, flexible-term, and charitable grantor-retained income trusts.