Gift Trusts and Grantor Retained Annuity Trusts (GRATs)

A grantor retained annuity trust (GRAT) is a fantastic structure. In my opinion it’s a win-win structure because of the lower 7520 rates. You can set one of these grantor retained annuity trusts for a term of years, let’s say five or 10 years, and it has a reasonable chance to get a good amount of money out of your estate.