hard · Certified Financial Planner Estate Planning
The Solis household establishes a 5-year zeroed-out GRAT with 5,000,000 in stock. The Section 7520 rate is 4.8%.
If the stock returns 9% annually and the grantor survives the term, what passes to the remainder beneficiaries free of transfer tax?
- The full value of the trust, but it consumes $5,000,000 of exclusion.
- $0, because the annuity consumes the trust.
- All appreciation in excess of the 4.8% hurdle rate.
- $5,000,000
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