What is a GRAT (grantor retained annuity trust)?
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.
Warren Team
Updated October 24, 2025
38
Warren Team
Updated October 24, 2025
38
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