Grantor Retained Income Trusts
Grantor Retained Income Trusts are often called "GRITs" and are an advanced estate planning strategy. A GRIT is irrevocable in that it cannot be undone once it is established. The person who creates the trust is called the "grantor" and they transfer assets to the GRIT. However, as the name suggests, the grantor retains an interest in the GRIT, specifically the right to receive all of the net income from the trust assets for a fixed term of years. When that term of years is over, the trust property is distributed to the trust beneficiaries, such as the grantor's children or grandchildren.
There are huge tax savings associated with using a GRIT, but the laws governing these trusts are very complex. You should seek the advice of an attorney if you believe a GRIT would benefit your estate plan.
There are companies out there that offer quick, cheap trusts. They market to people who are looking for a deal, and they provide terrible products that have not been drafted by attorneys licensed within their customers' jurisdictions. As you can guess from above, most people don't even need trusts as a part of their estate plans. At Barber Power Law Group, our experienced estate planning attorneys create a unique estate plan for every single client that comes through our door. We draft each estate planning document, including trusts, by hand to ensure that our clients' objectives are accomplished. We seek to maximize our clients' legacy while minimizing taxes on their estates.
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