Grat Meaning in English
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Definición
A 'GRAT' is a legal and financial term meaning 'Grantor Retained Annuity Trust', a special kind of trust used in estate planning to minimize taxes when passing on assets.
Uso & Matices
'GRAT' is a highly technical term, mainly used by lawyers, accountants, and estate planners in the US. It is not used in casual conversation. If seen outside legal/financial contexts, it is likely a typo or abbreviation. Always written in all caps.
Oraciones de Ejemplo
A GRAT can help families reduce estate taxes.
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My lawyer recommended setting up a GRAT.
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A GRAT pays an annual income to the grantor for a fixed time.
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Only wealthy individuals usually bother to create a GRAT for their estate plans.
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If the assets in your GRAT grow quickly, you can pass on more to your heirs tax-free.
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Setting up a GRAT can be complex, so it’s best to talk to a specialized attorney.
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