Kings New York Grantor Retained Annuity Trust

• Category: Trusts - Misc.
• State: Multi-State
• County: Kings
• Control #: US-13197BG
• Format: Word; Rich Text

Description

This form is used for a grantor retained annuity trust. Kings New York Granter Retained Annuity Trust (GREAT) is a specific type of estate planning tool that allows individuals to transfer assets to their beneficiaries while still retaining an income stream for a specified period. This trust is widely used in the New York area, especially among affluent individuals looking to minimize estate tax liability. The Kings New York GREAT operates by the granter transferring assets, typically appreciating assets such as stocks, real estate, or businesses, into an irrevocable trust. The granter will retain the right to receive a fixed annuity payment from the trust for a predetermined number of years. At the end of the annuity term, the remaining assets in the trust pass on to the designated beneficiaries. The benefits of Kings New York GREAT are numerous. Firstly, it allows individuals to transfer assets to family members or loved ones while potentially reducing the overall estate tax burden. By setting up a GREAT, the granter takes advantage of the current gift tax exemption and freezes the asset's value for estate tax purposes. Any future appreciation in the asset's value will not be subject to estate tax. Furthermore, Kings New York Grants offer flexibility in terms of annuity payments. The granter can structure the annuity payments to be fixed, increasing, or decreasing, depending on their specific financial needs and objectives. This flexibility allows individuals to tailor the GREAT to their unique circumstances and goals. It's important to note that there are variations of Kings New York Grants, such as zeroed-out Grants and rolling Grants. Zeroed-out Grants involve setting the annuity payments in a way that there is little to no taxable gift upon the creation of the trust. Rolling Grants, on the other hand, involve creating a series of Grants one after the other to continually transfer assets to beneficiaries, maximizing tax advantages. In conclusion, Kings New York Granter Retained Annuity Trusts are valuable estate planning tools for individuals looking to transfer assets while minimizing estate tax liability. These trusts offer flexibility in the structure of annuity payments, allowing individuals to cater to their specific needs and objectives. Different variations of Kings New York Grants, such as zeroed-out Grants and rolling Grants, provide additional strategies for achieving tax advantages.

Kings New York Granter Retained Annuity Trust (GREAT) is a specific type of estate planning tool that allows individuals to transfer assets to their beneficiaries while still retaining an income stream for a specified period. This trust is widely used in the New York area, especially among affluent individuals looking to minimize estate tax liability. The Kings New York GREAT operates by the granter transferring assets, typically appreciating assets such as stocks, real estate, or businesses, into an irrevocable trust. The granter will retain the right to receive a fixed annuity payment from the trust for a predetermined number of years. At the end of the annuity term, the remaining assets in the trust pass on to the designated beneficiaries. The benefits of Kings New York GREAT are numerous. Firstly, it allows individuals to transfer assets to family members or loved ones while potentially reducing the overall estate tax burden. By setting up a GREAT, the granter takes advantage of the current gift tax exemption and freezes the asset's value for estate tax purposes. Any future appreciation in the asset's value will not be subject to estate tax. Furthermore, Kings New York Grants offer flexibility in terms of annuity payments. The granter can structure the annuity payments to be fixed, increasing, or decreasing, depending on their specific financial needs and objectives. This flexibility allows individuals to tailor the GREAT to their unique circumstances and goals. It's important to note that there are variations of Kings New York Grants, such as zeroed-out Grants and rolling Grants. Zeroed-out Grants involve setting the annuity payments in a way that there is little to no taxable gift upon the creation of the trust. Rolling Grants, on the other hand, involve creating a series of Grants one after the other to continually transfer assets to beneficiaries, maximizing tax advantages. In conclusion, Kings New York Granter Retained Annuity Trusts are valuable estate planning tools for individuals looking to transfer assets while minimizing estate tax liability. These trusts offer flexibility in the structure of annuity payments, allowing individuals to cater to their specific needs and objectives. Different variations of Kings New York Grants, such as zeroed-out Grants and rolling Grants, provide additional strategies for achieving tax advantages.