Oregon 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. An Oregon Granter Retained Annuity Trust, commonly known as ORGAN, is a legal and financial instrument designed to assist individuals in minimizing estate taxes and transferring wealth to their heirs. It is an irrevocable trust established during the granter's lifetime, wherein the granter transfers assets to the trust while retaining the right to receive annual fixed annuity payments for a specified period. The ORGAN offers several benefits, such as reducing estate tax liability, preserving assets for future generations, and potential income tax advantages. The granter's retained annuity payment is determined at the trust's creation and is usually set at a level that returns the initial investment over the trust's term. By retaining this annuity, the granter removes the assets from their estate, potentially reducing estate taxes upon their passing. There are two primary types of Oregon Granter Retained Annuity Trusts — thGranteror Retained Annuity Trust (GREAT) and the Delaware Incomplete Non-Grantor Trust (DING). The GREAT is the more widely used option and allows the granter to receive fixed annuity payments throughout the trust term, after which any remaining assets pass to the designated beneficiaries free of estate taxes. The DING, on the other hand, is specifically formulated to minimize income tax on investments, making it a popular choice for high net worth individuals. Additionally, there are variations of the traditional ORGAN, such as the Net Income with Makeup Charitable Remainder Unit rust (TIMEOUT), which allows for charitable donations as beneficiaries, potentially providing income tax deductions. Another variant is the Flip Unit rust, which grants the granter the flexibility to switch from an annuity payment to a unit rust payment during the trust term, allowing fluctuations based on the trust's performance. In conclusion, an Oregon Granter Retained Annuity Trust (ORGAN) is a powerful estate planning tool that provides individuals with the ability to transfer assets while retaining an income stream. This irrevocable trust offers significant estate tax advantages and various types or variations, including GREAT, DING, TIMEOUT, and Flip Unit rust, catering to different objectives and wealth management goals.

An Oregon Granter Retained Annuity Trust, commonly known as ORGAN, is a legal and financial instrument designed to assist individuals in minimizing estate taxes and transferring wealth to their heirs. It is an irrevocable trust established during the granter's lifetime, wherein the granter transfers assets to the trust while retaining the right to receive annual fixed annuity payments for a specified period. The ORGAN offers several benefits, such as reducing estate tax liability, preserving assets for future generations, and potential income tax advantages. The granter's retained annuity payment is determined at the trust's creation and is usually set at a level that returns the initial investment over the trust's term. By retaining this annuity, the granter removes the assets from their estate, potentially reducing estate taxes upon their passing. There are two primary types of Oregon Granter Retained Annuity Trusts — thGranteror Retained Annuity Trust (GREAT) and the Delaware Incomplete Non-Grantor Trust (DING). The GREAT is the more widely used option and allows the granter to receive fixed annuity payments throughout the trust term, after which any remaining assets pass to the designated beneficiaries free of estate taxes. The DING, on the other hand, is specifically formulated to minimize income tax on investments, making it a popular choice for high net worth individuals. Additionally, there are variations of the traditional ORGAN, such as the Net Income with Makeup Charitable Remainder Unit rust (TIMEOUT), which allows for charitable donations as beneficiaries, potentially providing income tax deductions. Another variant is the Flip Unit rust, which grants the granter the flexibility to switch from an annuity payment to a unit rust payment during the trust term, allowing fluctuations based on the trust's performance. In conclusion, an Oregon Granter Retained Annuity Trust (ORGAN) is a powerful estate planning tool that provides individuals with the ability to transfer assets while retaining an income stream. This irrevocable trust offers significant estate tax advantages and various types or variations, including GREAT, DING, TIMEOUT, and Flip Unit rust, catering to different objectives and wealth management goals.