What is a GRAT (grantor retained annuity trust)?
RetirementWarren Team
Quick answer
A grantor retained annuity trust (GRAT) is an irrevocable trust where you transfer assets, receive a fixed annuity back over 2–10 years, and your heirs receive any growth above the IRS Section 7520 hurdle rate, often gift-tax-free.

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions. Read our disclaimers.
All questionsGet an answer built on your own numbers
Warren reads your accounts, then answers questions like this one with your real income, taxes and goals in mind.