Rolling GRAT is a term used to describe a situation where the grantor uses the annuity payout to fund a new GRAT each year. Typically, each GRAT will be a zero or minimum gift (maximum annuity) GRAT for a two-year duration.
Rolling GRATs are always assumed to be structured as a series of two-year maximum annuity GRATs. This is the only option allowed in the program. In addition, the GRATs will not be illustrated for a period that will cause the last two-year GRAT to terminate after the grantor’s death.
Click the Edit button to set the specifications of the GRAT:
- The name of the Rolling GRAT
- The year in which the transfer takes place
- The §7520 rate
- To select the asset to use to fund this technique, click the ‘+’ button.
- The principal will be displayed based on the asset you have selected.
- If you want to fund the life insurance premiums via a GRAT, check yes, and this adds a new report.