The Hennepin Minnesota Granter Retained Annuity Trust (GREAT) is a type of irrevocable trust that allows a granter to transfer assets to beneficiaries while retaining an annuity for a specified period. This trust is governed by Minnesota state laws and specifically operates within Hennepin County. Key benefits of establishing a Hennepin Minnesota GREAT include estate tax reduction, asset protection, and potential income tax savings. Here are some important points to understand about this type of trust: 1. Definition: The Hennepin Minnesota GREAT is a legal arrangement where a granter transfers assets, such as real estate, investments, or business interests, into a trust for the benefit of named beneficiaries. 2. Granter's Retained Annuity: The granter retains an annuity payment from the trust for a predetermined number of years. This annuity amount is either a fixed dollar amount or a percentage of the initial trust assets. 3. Beneficiary Interests: Once the annuity period ends, the remaining trust assets, including any appreciation, are distributed to the beneficiaries named in the trust. These beneficiaries can include family members, loved ones, or charitable organizations. 4. Estate Tax Implications: By creating a Hennepin Minnesota GREAT, the granter may potentially reduce or eliminate estate taxes on the assets transferred into the trust. Upon the granter's death, the value of assets in the GREAT becomes excluded from the granter's taxable estate. 5. Asset Protection: Assets placed in the GREAT are shielded from creditors, providing an added layer of protection for the granter's wealth. 6. Income Tax Considerations: During the GREAT's annuity period, the granter is responsible for reporting and paying income tax on the annuity payments received. 7. Potential Appreciation: If the assets within the trust appreciate at a higher rate than the annuity, the excess growth is transferred to beneficiaries free of any additional gift or estate taxes. There are no specific variations or types of the Hennepin Minnesota GREAT. However, it's important to consult an experienced estate planning attorney or financial advisor to tailor the trust to an individual's specific needs and objectives. In conclusion, the Hennepin Minnesota Granter Retained Annuity Trust is a versatile estate planning tool that enables individuals to transfer assets to beneficiaries while retaining an annuity payment for a fixed period. It offers potential estate tax reduction, asset protection, and income tax savings for residents within Hennepin County, Minnesota.