Event Details
End of trust term
Description
The trust term ends, and remaining assets are transferred to the Beneficiaries' Trust.
Participants (2)
| Name | Type | Mentions | |
|---|---|---|---|
| grantor | person | 26 | View Entity |
| beneficiaries | person | 21 | View Entity |
Source Documents (1)
HOUSE_OVERSIGHT_022354.jpg
This confidential J.P. Morgan document from the HOUSE_OVERSIGHT files explains the "Cascading GRAT" financial strategy. The strategy involves a grantor transferring assets into a series of Grantor Retained Annuity Trusts (GRATs), using annuity payments from older GRATs to fund new ones, with the goal of passing wealth to beneficiaries free of gift tax. The document notes a 2012 gift tax exemption of $5,120,000 and cites the 2000 Walton v. Commissioner case that allows for a "zeroed out" GRAT to eliminate gift tax liability.
Related Events
Events with shared participants
Grantor establishes the first GRAT (GRAT 1) by transferring assets into it.
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Annuity payments from an existing GRAT are used to fund a new GRAT, creating a 'cascading' series of trusts.
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An illustrative financial strategy called 'Cascading GRATs' is modeled over five years. It shows the economic flows from an initial $50 million transfer, through four separate GRATs, with remainders flowing to a beneficiary's trust and annuities flowing back to the grantor.
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An illustrative example of a 'Cascading GRATs' financial strategy, showing the flow of funds between a grantor, a series of trusts, and a beneficiary over five years.
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A hypothetical 5-year financial strategy called 'Economic flows of Cascading GRATs' is detailed, showing the flow of funds from an initial $50 million investment between a grantor and a beneficiary.
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Description of a financial planning strategy involving the sale of assets to an Intentionally Defective Grantor Trust (IDGT) to transfer future asset appreciation to heirs in a tax-efficient manner.
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A cash flow example comparing two financial scenarios: 'Scenario 1: Hold asset' and 'Scenario 2: Sell asset to IDGT'. The analysis projects outcomes over a 20-year period.
2025-11-20
A hypothetical cash flow analysis comparing two scenarios for wealth transfer: 'Scenario 1: Hold asset' and 'Scenario 2: Sell asset to IDGT'.
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A proposed strategy to 'enhance the potential benefits' by funding a series of 'cascading GRATs' where the remainders are added to the IDGT, and upon success, additional assets can be sold to the IDGT.
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A detailed, four-step process illustrating how a sale of an asset to an Intentionally Defective Grantor Trust (IDGT) works as an estate planning and wealth transfer strategy.
Date unknown • Not specified
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