Can you give me an example of the GRAT tax calculations?
Example of $1,000,000 GRAT established when IRS interest rate is 4.4%, assuming total annual investment return of 10%. NOTE: The IRS interest “hurdle” rate is set monthly by the IRS.
|
Term of GRAT (in years) |
Annual Annuity Payment Made to Donor (Assumming 4.4% IRS Rate) | "Tax Free" Gift to Beneficiaries at End of Term (Assuming 10% Total Return) |
| 2 | $533,248 | $90,180 |
| 3 | $363,082 | $129,200 |
| 5 | $227,159 | $223,682 |
| 10 | $125,758 | $589,490 |
| 15 | $92,474 | $1,239,107 |
| 20 | $76,211 | $2,362,498 |