Grantor Retained Unitrust (GRUT) Summary Report

[Kathleen Reynolds]

#4826

The Summary Tab includes computations of the economic values as well as the gift tax values (if different because of the rules under §2702) of the component interests of the trust, including the value of the remainder interest, the reversionary interest, if any, and the amount of the taxable gift as a result of the transfer in trust.

In addition, the calculation provides detailed analyses of the selected type of GRUT; showing required annuity factors, adjustment factors, and the “subtraction method” of computing the taxable gift value of the residual interest in trust.

The summary report also shows an annuity payment equal to a fixed percentage of the current value of each year of the assets in trust. In this sense, a GRUT is similar to a variable annuity. The payout rate is fixed, but since the value of the assets can be expected to vary year to year, the dollar annuity payout also varies year to year.

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