Grantor Retained Annuity Trust (GRAT)
Transfer asset appreciation to heirs tax-free while receiving fixed payments during the trust term
How It Works
You transfer an appreciating position into an irrevocable trust and receive annuity payments for a set term (typically 2-4 years)
The trust pays you a fixed annual amount based on IRS interest rates
If the position appreciates faster than the IRS rate, the excess passes to beneficiaries gift-tax free
At the end of the term, remaining assets transfer to your heirs without using your gift exemption
Key Benefits
Tax-Free Growth Transfer
Pass appreciation above IRS rates to heirs without gift tax
Zero Gift Tax
Structure as a 'zeroed-out' GRAT to avoid using gift exemption
Minimal Risk
If assets don’t appreciate enough, they return to you—no downside
Who This Is For
Holders of $2M+ in assets expecting near-term appreciation. Ideal for volatile positions — a single stock or crypto — where you anticipate significant short-term gains. Best for those comfortable with rolling GRATs.
By The Numbers
0%
Gift Tax Rate
$2M
Minimum Position
2-4 years
Typical Term
Ready to explore more strategies?
Browse All Solutions