Have you ever heard of a GRAT or a “Walton GRAT”? The Grantor Retained Annuity Trust is a powerful estate planning and asset protection technique that allows wealthy families and modestly wealthy families to move a great deal of value without incurring gift taxes at the time of the transfer. The GRAT also allows you to move assets out of your estate but to get some of the assets returned to you. This ability to gift and to use assets is very rare in the estate planning world.
The GRAT can be quite complicated and you will need to consult counsel. However, in the current environment where stocks, real estate, and business values are at historic lows, and, where interest rates are also low the GRAT is a tool that can really help families to protect and preserve assets for the next generation. In this brief video David Frees explains how it can work.