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Michael A. Milazzo, CLU, ChFC
Registered Principal
The Meridian Financial Company
3350 Club Villas Dr SE, Unit #1303
Southport, NC 28461
Phone: 631-979-4223
Fax: 910-854-0002
Email: meridian@ae.cadaretgrant.com
Website: www.merfinco.com
July/August 2025
GRATs: A Handy Wealth-Transfer Tool
A grantor-retained annuity trust (GRAT) is an estate strategy that may minimize tax on large financial gifts to family members and help your estate avoid using much, if any, of your lifetime gift and estate tax exclusion.
Structure
With a GRAT, you place appreciating assets into an irrevocable trust and receive an annual income from the trust for a specified period.When the trust expires, your beneficiary receives the remaining assets with little or no gift-tax consequences to your estate. You select whether income payments will come from asset earnings or be based on a percentage of the total value of the trust assets.
Caution
Your beneficiary receives nothing, however, if you die before the GRAT expires. Instead, the assets become part of your taxable estate, negating the trust benefits. So, take care when choosing a trust period.Professional financial and legal help is essential when considering a trust, particularly an irrevocable trust. You can't easily undo a irrevocable trust if you later change your mind or make a mistake creating it.
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Securities and Advisory Services offered through Cadaret, Grant & Co, Inc, a Registered Investment Advisor and Member FINRA/SIPC. The Meridian Financial Company and Cadaret, Grant & Co., Inc. are separate entities. I am registered to sell Securities in the following States: NY, NJ, PA, NC, FL, ID.
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