hard · Certified Financial Planner Retirement
A client is choosing between a Qualified Personal Residence Trust (QPRT) and a zeroed-out Grantor Retained Annuity Trust (GRAT).
Which statement accurately describes a primary advantage of the zeroed-out GRAT?
- It eliminates mortality risk entirely.
- It consumes essentially no lifetime basic exclusion upon funding.
- It allows the property to receive a step-up in basis at the grantor's death.
- It provides a 40% valuation discount automatically.
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