Type any word!

Grat Meaning in English

word

ɡræt
GRAT
ɡræt
GRAT

Definition

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.

Usage & Nuances

'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.

Example Sentences

A GRAT can help families reduce estate taxes.

basic

My lawyer recommended setting up a GRAT.

basic

A GRAT pays an annual income to the grantor for a fixed time.

basic

Only wealthy individuals usually bother to create a GRAT for their estate plans.

natural

If the assets in your GRAT grow quickly, you can pass on more to your heirs tax-free.

natural

Setting up a GRAT can be complex, so it’s best to talk to a specialized attorney.

natural