In a Grantor-Retained Annuity Trust (GRAT)

question 133

Multiple Choice

In a grantor-retained annuity trust (GRAT) :

• A) the grantor could put company stock in an irrevocable trust lasting for up to 10 years.
• B) the grantor retains the voting power and interest income from the stock in the trust.
• C) the company stock transfers to the beneficiaries at the end of the trust and is taxed at its discounted present value.
• D) All of the above

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Definitions:

Overwhelmed By Anxiety

A state of feeling excessively worried, nervous, or uneasy to a degree that it may interfere with daily activities.

Obsessive-Compulsive Disorder

A mental health disorder characterized by unreasonable thoughts and fears (obsessions) that lead to compulsive behaviors.

Preoccupied

Being absorbed in thought or excessively concerned with something, often at the expense of awareness of one's surrounding environment.

Reduces Anxiety

The process or action of decreasing feelings of worry, nervousness, or unease typically about an imminent event or something with an uncertain outcome.