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:

Task Decisions

Decisions that relate specifically to the execution or planning of tasks within an organization or project.

Powerful Stakeholders

Individuals or groups that hold significant influence, resources, or power within or outside an organization, affecting its decisions and actions.

Collective Responsibility

Collective responsibility is the doctrine or principle that each member of a group shares responsibility for the actions or outcomes of the group as a whole, emphasizing mutual accountability.

Mediating Variables

Variables that explain the relationship between two other variables, usually serving as an intermediary or mechanism through which an effect occurs.