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Question

Which is better: a GRAT or a sale to a grantor trust?

Answer

Both can move growth out of your estate while using little exemption. A GRAT can use almost no exemption but loses its benefit if you die during the term. A sale to a grantor trust generally requires seed funding but can accommodate larger transfers and GST planning. Your wealth advisor can help you compare them.

Related FAQs

Where can I learn more about tax-free gifting options?

Is there still a reason to act now that the exemption is permanent?

Should I gift appreciated assets if my heirs lose the step-up in basis?
Estate Planning Tax Planning Impact of New Laws OBBBA Generational Wealth Year-Round Tax Planning FAQs
Last Updated Oct. 14, 2026
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