Phoenix Arizona Grantor Retained Annuity Trust

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

Description

This form is used for a grantor retained annuity trust. A Phoenix Arizona Granter Retained Annuity Trust (GREAT) is a type of irrevocable trust established in the state of Arizona that allows a granter to transfer assets while retaining an income stream for a specified period of time. By setting up a GREAT, individuals can potentially reduce estate taxes, gift taxes, and transfer wealth to their beneficiaries in a tax-efficient manner. A Phoenix Arizona GREAT is composed of two key parties: the granter, who establishes the trust, and the beneficiaries, who eventually receive the trust's assets. The granter will transfer assets, such as cash, securities, or real estate, into the GREAT and then receive annual annuity payments from the trust for a predetermined period. The term "Phoenix Arizona" refers to the location where the GREAT is established, indicating that it is subject to the laws and regulations of the state. Arizona, with its favorable tax environment and trust-friendly laws, attracts individuals seeking to set up financial structures for estate planning purposes. There are several types of Phoenix Arizona Granter Retained Annuity Trusts that one can choose from, depending on their specific goals: 1. Basic GREAT: This is the most common type of GREAT, where the granter receives an annual fixed annuity payment for the trust term, which is predetermined at the time of establishment. 2. No Gift GREAT: In this variation, the annuity payment is set to equal the value of the assets transferred to the trust, effectively eliminating any gift tax liability. This type of GREAT is often used when the granter wishes to minimize gift taxes while still benefiting from potential appreciation of the assets. 3. Zeroed-Out GREAT: Similar to the No Gift GREAT, a Zeroed-Out GREAT aims to avoid gift taxes by structuring the annuity payments in a way that the present value of the retained interest equals the value of the assets transferred to the trust. This allows the granter to transfer assets without incurring any gift tax liability. 4. Rolling GREAT: With a Rolling GREAT, the granter creates a series of Grants with different terms, allowing for continued asset transfers and annuity payments over an extended period. This type of GREAT can be beneficial in situations where the granter wants to transfer assets and maintain a steady stream of income for an extended duration. By utilizing a Phoenix Arizona Granter Retained Annuity Trust, individuals can take advantage of Arizona's favorable trust laws and potentially reduce their overall tax burden while providing for future generations. It is crucial to consult with financial and legal professionals to determine the most suitable type of GREAT based on individual circumstances and goals.

A Phoenix Arizona Granter Retained Annuity Trust (GREAT) is a type of irrevocable trust established in the state of Arizona that allows a granter to transfer assets while retaining an income stream for a specified period of time. By setting up a GREAT, individuals can potentially reduce estate taxes, gift taxes, and transfer wealth to their beneficiaries in a tax-efficient manner. A Phoenix Arizona GREAT is composed of two key parties: the granter, who establishes the trust, and the beneficiaries, who eventually receive the trust's assets. The granter will transfer assets, such as cash, securities, or real estate, into the GREAT and then receive annual annuity payments from the trust for a predetermined period. The term "Phoenix Arizona" refers to the location where the GREAT is established, indicating that it is subject to the laws and regulations of the state. Arizona, with its favorable tax environment and trust-friendly laws, attracts individuals seeking to set up financial structures for estate planning purposes. There are several types of Phoenix Arizona Granter Retained Annuity Trusts that one can choose from, depending on their specific goals: 1. Basic GREAT: This is the most common type of GREAT, where the granter receives an annual fixed annuity payment for the trust term, which is predetermined at the time of establishment. 2. No Gift GREAT: In this variation, the annuity payment is set to equal the value of the assets transferred to the trust, effectively eliminating any gift tax liability. This type of GREAT is often used when the granter wishes to minimize gift taxes while still benefiting from potential appreciation of the assets. 3. Zeroed-Out GREAT: Similar to the No Gift GREAT, a Zeroed-Out GREAT aims to avoid gift taxes by structuring the annuity payments in a way that the present value of the retained interest equals the value of the assets transferred to the trust. This allows the granter to transfer assets without incurring any gift tax liability. 4. Rolling GREAT: With a Rolling GREAT, the granter creates a series of Grants with different terms, allowing for continued asset transfers and annuity payments over an extended period. This type of GREAT can be beneficial in situations where the granter wants to transfer assets and maintain a steady stream of income for an extended duration. By utilizing a Phoenix Arizona Granter Retained Annuity Trust, individuals can take advantage of Arizona's favorable trust laws and potentially reduce their overall tax burden while providing for future generations. It is crucial to consult with financial and legal professionals to determine the most suitable type of GREAT based on individual circumstances and goals.