The Grantor Retained Annuity Trust (“GRAT”) is often used to leverage significant wealth outside of a wealthy client’s taxable estate. Significant gift tax leverage can be obtained by implementing a GRAT, especially given the lack of gift tax risk that exists with a properly-drafted GRAT. Whether you’re an attorney, an accountant, a trust officer or a financial planner, this class will walk you through the basics of GRAT planning.

In this course, you will:

• Learn the differences between a GRAT and an installment sale to an IDGT
• Get a step-by-step explanation of how a GRAT works, including both increasing annuity GRATs and decreasing annuity GRATs
• Explore IRC Sec. 2704(b) in order to understand why valuation discounts are limited by state default statutes
• Hear about how and why valuation discounts work
• Discover the math behind GRATs through numerous real world numerical examples
• Find out how increasing and decreasing the annuity payments affects the GRAT results
• Learn why the Restricted LLC/LP provides larger valuation discounts and why Nevada is the only state offering these statutes
• Explore the differences in valuation discounts that can be obtained with various lock-in differences that can be creatively included
• Hear about the strategy behind selecting the best business valuation appraiser for a GRAT versus an installment sale to an IDGT.

Your certificate will be awarded upon successful completion of the course requirements, including one video lecture, which will be followed by a 10 question multiple choice exam.