New York 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 New York Granter Retained Annuity Trust (GREAT) is a type of estate planning tool that allows individuals to transfer assets to a trust while retaining an annuity payment for a specific period of time. It is a strategic method used to reduce estate taxes on large estates, particularly in New York. Below are some relevant keywords and types of New York Granter Retained Annuity Trusts: 1. Estate planning: New York Granter Retained Annuity Trusts are commonly used in estate planning strategies to minimize estate tax liability. 2. Asset transfer: The primary purpose of a GREAT is to transfer assets to a trust, removing them from the granter's taxable estate. 3. Granter: The individual creating the trust and transferring the assets is known as the granter. 4. Retained annuity: The granter retains the right to receive fixed annuity payments from the trust for a predetermined period, typically between two and twenty years. 5. Estate tax reduction: Grants are designed to take advantage of the IRS's rules for valuing assets transferred to the trust, resulting in reduced estate taxes upon the granter's passing. 6. New York-specific: New York Granter Retained Annuity Trusts are particularly relevant for individuals residing in New York state, as they allow for state-specific estate planning considerations. 7. Zeroed-out GREAT: This type of GREAT is structured so that the present value of the retained annuity payments equals the value of the assets transferred, essentially reducing or eliminating the gift tax consequences. 8. Short-term GREAT: A GREAT with a shorter annuity term, usually two or three years, can be used if the granter anticipates quick appreciation of the transferred assets. 9. Long-term GREAT: A GREAT with a longer annuity term, typically closer to the maximum 20 years, can be utilized to transfer assets with expected long-term growth potential. 10. Remainder beneficiaries: Upon the expiration of the annuity term, any remaining assets in the GREAT pass to the designated remainder beneficiaries, typically family members or other loved ones. In conclusion, a New York Granter Retained Annuity Trust is an effective estate planning tool used to transfer assets while minimizing estate taxes. Various types of Grants exist, including zeroed-out Grants, short-term Grants, and long-term Grants. Considering its New York-specific application, this trust option allows individuals to strategically plan for their estate in accordance with state-specific regulations.

A New York Granter Retained Annuity Trust (GREAT) is a type of estate planning tool that allows individuals to transfer assets to a trust while retaining an annuity payment for a specific period of time. It is a strategic method used to reduce estate taxes on large estates, particularly in New York. Below are some relevant keywords and types of New York Granter Retained Annuity Trusts: 1. Estate planning: New York Granter Retained Annuity Trusts are commonly used in estate planning strategies to minimize estate tax liability. 2. Asset transfer: The primary purpose of a GREAT is to transfer assets to a trust, removing them from the granter's taxable estate. 3. Granter: The individual creating the trust and transferring the assets is known as the granter. 4. Retained annuity: The granter retains the right to receive fixed annuity payments from the trust for a predetermined period, typically between two and twenty years. 5. Estate tax reduction: Grants are designed to take advantage of the IRS's rules for valuing assets transferred to the trust, resulting in reduced estate taxes upon the granter's passing. 6. New York-specific: New York Granter Retained Annuity Trusts are particularly relevant for individuals residing in New York state, as they allow for state-specific estate planning considerations. 7. Zeroed-out GREAT: This type of GREAT is structured so that the present value of the retained annuity payments equals the value of the assets transferred, essentially reducing or eliminating the gift tax consequences. 8. Short-term GREAT: A GREAT with a shorter annuity term, usually two or three years, can be used if the granter anticipates quick appreciation of the transferred assets. 9. Long-term GREAT: A GREAT with a longer annuity term, typically closer to the maximum 20 years, can be utilized to transfer assets with expected long-term growth potential. 10. Remainder beneficiaries: Upon the expiration of the annuity term, any remaining assets in the GREAT pass to the designated remainder beneficiaries, typically family members or other loved ones. In conclusion, a New York Granter Retained Annuity Trust is an effective estate planning tool used to transfer assets while minimizing estate taxes. Various types of Grants exist, including zeroed-out Grants, short-term Grants, and long-term Grants. Considering its New York-specific application, this trust option allows individuals to strategically plan for their estate in accordance with state-specific regulations.