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Tampa Estate Planning Attorney > Lutz Grantor Retained Income Trust Attorney

Lutz Grantor Retained Income Trust Attorney

As you plan for your future and that of your loved ones in Lutz, you may consider various estate planning tools to protect your assets and provide for your family. One powerful strategy is the Grantor Retained Income Trust (GRIT).

Our Lutz Grantor Retained Income Trust attorney at David Toback, Attorney at Law, is dedicated to helping Lutz residents overcome the challenges of GRITs and maximize their benefits.

What Is a Grantor Retained Income Trust?

A GRIT allows you as the grantor to transfer assets (such as cash, securities, or real estate) into the trust while retaining the right to receive income from those assets for a specified period of time. After that period, the remaining assets are distributed to the beneficiaries you’ve named, typically your children or grandchildren.

There are two main types of GRITs to consider:

  • Term GRIT: This is the most common type. You retain the right to income from the trust for a fixed number of years. After the term ends, the remaining assets pass to your beneficiaries at a discounted value for tax purposes.
  • Unitrust GRIT: Here, you receive a fixed annual percentage of the trust’s fair market value. This percentage can fluctuate over time as the value of the trust’s assets changes.

Here are some key advantages of using a GRIT in your estate plan:

  • Reduce estate taxes: By transferring assets to a GRIT, you’re effectively removing their future appreciation from your taxable estate. This can lead to substantial tax savings for your heirs.
  • Maintain control: While the assets are technically owned by the trust, you retain the right to receive income from them for a set period. This allows you to continue enjoying the benefits of your assets during your lifetime.
  • Flexibility: GRITs can be customized to fit your specific needs. You can choose the length of the income term, the beneficiaries who receive the assets after the term ends, and even the type of income you want to receive.

Is a GRIT Right for You?

While GRITs offer many advantages, they’re not a one-size-fits-all solution. Here are some factors to consider when deciding if a GRIT is right for you:

  • Your age and life expectancy: GRITs are typically best suited for individuals with a longer life expectancy. This allows the assets in the trust to appreciate and benefit from the tax advantages.
  • Your financial goals: They ensure you retain enough income from the trust to meet your needs throughout the income term.
  • Tax implications: While GRITs can reduce estate taxes, there may be some tax consequences during the trust’s lifetime. Consulting with a tax advisor is crucial.

Contact Our Lutz Grantor Retained Income Trust Attorneys

If you are a Lutz resident considering a Grantor Retained Income Trust or exploring other estate planning strategies, don’t hesitate to contact David Toback, Attorney at Law. We’ll guide you through the process with expertise, compassion, and a commitment to your best interests. Contact us today to schedule a consultation with our Lutz Grantor Retained Income Trust attorney.

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