How does a zeroed-out GRAT work?
Quick Answer
A zeroed-out (Walton) GRAT structures the annuity payments so their present value at the IRS Section 7520 rate exactly equals the contribution — making the taxable gift to heirs effectively $0. Only growth above the hurdle rate transfers tax-free.
Warren Team
Updated October 11, 2025
37
Warren Team
Updated October 11, 2025
37
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