Grantor retained annuity trust (GRAT): Allows the grantor to put certain assets into a temporary trust account and freeze its value, removing additional appreciation from the estate and giving it to heirs with minimal estate or gift tax liability. Education trust: Beneficiaries can only use the ...
You could name a trustee to put in the effort of overseeing the management of the business and pass on profits to your child. (Here's what entrepreneurs should know about life insurance.) Reap tax advantages. This can include a “charitable annuity trust” or “charitable remainder trust,”...
I am trying to read and learn. The more I read the less I understand. But, wouldn’t it be wiser to invest this money in a mutual fund (of some sort) than an annuity? I understand annuities are expense but I get a “guaranteed” stream of income? I am currently 60 yrs old and...
Ownership in a business is an asset, which means it may need to pass through probate. However, using an irrevocable trust— such as a grantor retained annuity trust (or a GRAT) or an irrevocable life insurance trust (or an ILIT) — can ease the complexity surrounding these situations: A...