New York Grantor Retained Income Trust with Division into Trusts for Issue after Term of Years

• Category: Trusts - Irrevocable
• State: Multi-State
• Control #: US-0678BG
• Format: Word; Rich Text

Description

Grantor-retained income trust or GRIT is an irrevocable trust established in a written trust agreement whereby the grantor transfers assets but retains the income from or the use of these assets for a stipulated period of time. The net income is distribut A New York Granter Retained Income Trust (GRIT) with Division into Trusts for Issue after Term of Years is a specialized type of trust established under New York law. This unique trust structure combines aspects of a granter retained income trust with a division into separate trusts upon the expiration of a certain term of years. A Granter Retained Income Trust is a trust in which the granter transfers assets to the trust, retains the right to receive income from the trust for a specified period, and designates beneficiaries who will receive the remaining trust assets upon the expiration of the retaining period. This type of trust allows the granter to transfer wealth to future generations while still maintaining control over income generated from the trust assets. A New York GRIT with Division into Trusts for Issue after Term of Years takes the concept of a GRIT a step further. It allows for the division of the trust into separate, individual trusts for each beneficiary at the end of a specified term of years. This means that the original trust will be divided, creating separate trusts specifically for each designated beneficiary. The division into trusts for issue after the term of years provides additional flexibility and control for the granter. It allows for the distribution of assets to beneficiaries based on their individual needs, circumstances, and goals. Each separate trust can be tailored to meet the unique requirements of each beneficiary, ensuring that the granter's intentions are fulfilled while maximizing tax planning opportunities and providing for different life situations. Some different types of New York Grits with Division into Trusts for Issue after Term of Years may include: 1. Fixed-Term GRIT: In this type of GRIT, the term of years for which the granter retains income is fixed and predetermined. At the end of the term, the trust is divided into separate trusts for each designated beneficiary. 2. Rolling GRIT: A Rolling GRIT is a trust where the term of years continually rolls or extends for each successive beneficiary. Instead of a fixed term, the trust continues for the duration of successive beneficiary's lives or other predetermined events. 3. Generation-Skipping GRIT: This type of GRIT is designed specifically to allow the granter to transfer wealth to beneficiaries who are at least two generations younger than the granter, such as grandchildren or great-grandchildren. The trust assets are divided into separate trusts for each beneficiary after the term of years. In conclusion, a New York Granter Retained Income Trust with Division into Trusts for Issue after Term of Years is a sophisticated estate planning tool that combines granter retained income trust structure with the division of the trust assets into separate trusts for each beneficiary after a specified term of years. This arrangement provides the granter with greater control and flexibility while allowing for the transfer of wealth to future generations.

A New York Granter Retained Income Trust (GRIT) with Division into Trusts for Issue after Term of Years is a specialized type of trust established under New York law. This unique trust structure combines aspects of a granter retained income trust with a division into separate trusts upon the expiration of a certain term of years. A Granter Retained Income Trust is a trust in which the granter transfers assets to the trust, retains the right to receive income from the trust for a specified period, and designates beneficiaries who will receive the remaining trust assets upon the expiration of the retaining period. This type of trust allows the granter to transfer wealth to future generations while still maintaining control over income generated from the trust assets. A New York GRIT with Division into Trusts for Issue after Term of Years takes the concept of a GRIT a step further. It allows for the division of the trust into separate, individual trusts for each beneficiary at the end of a specified term of years. This means that the original trust will be divided, creating separate trusts specifically for each designated beneficiary. The division into trusts for issue after the term of years provides additional flexibility and control for the granter. It allows for the distribution of assets to beneficiaries based on their individual needs, circumstances, and goals. Each separate trust can be tailored to meet the unique requirements of each beneficiary, ensuring that the granter's intentions are fulfilled while maximizing tax planning opportunities and providing for different life situations. Some different types of New York Grits with Division into Trusts for Issue after Term of Years may include: 1. Fixed-Term GRIT: In this type of GRIT, the term of years for which the granter retains income is fixed and predetermined. At the end of the term, the trust is divided into separate trusts for each designated beneficiary. 2. Rolling GRIT: A Rolling GRIT is a trust where the term of years continually rolls or extends for each successive beneficiary. Instead of a fixed term, the trust continues for the duration of successive beneficiary's lives or other predetermined events. 3. Generation-Skipping GRIT: This type of GRIT is designed specifically to allow the granter to transfer wealth to beneficiaries who are at least two generations younger than the granter, such as grandchildren or great-grandchildren. The trust assets are divided into separate trusts for each beneficiary after the term of years. In conclusion, a New York Granter Retained Income Trust with Division into Trusts for Issue after Term of Years is a sophisticated estate planning tool that combines granter retained income trust structure with the division of the trust assets into separate trusts for each beneficiary after a specified term of years. This arrangement provides the granter with greater control and flexibility while allowing for the transfer of wealth to future generations.