Grantor Retained Unitrust (grut)
Definition of "Grantor retained unitrust (grut)"
Irrevocable trust into which the grantor places assets and receives in turn a variable amount of income from a variable annuity (amount of income will vary yearly depending upon the increase or decrease in the value of the assets on deposit in the trust) for either a given number of years, or for the lesser of a given number of years, or until the grantor's death. When the term of the trust expires, assets in the trust to include any appreciation are distributed to the named remainder beneficiary (s). If the grantor is alive when the trust terminates, the assets and their appreciation within the trust are not included in the grantor's estate.
Popular Insurance Terms
That which adjoins. Most property insurance policies such as the homeowners insurance policy provide structural coverage on an adjacent building on the same basis as the primary building. ...
Procedure to minimize the adverse effect of a possible financial loss by (1) identifying potential sources of loss; (2) measuring the financial consequences of a loss occurring; and (3) ...
One that combines the two forms of ownership, stock and mutual. A stock insurance company is owned by stockholders, whereas a mutual insurance company is owned by its policyholders. A mixed ...
Effective January 4, 1994, the backup withholding rate on dividends, interest, and gross proceeds distributions increased from 20% to 31%. Backup withholding applies in the following ...
Right of a policyholder in life insurance with cash value to elect a smaller, fully paid-up policy, without any further premiums to pay. The amount of the paid-up policy is determined by ...
Policy not designed to pay the policyowner a dividend. ...
Coverage provided by the pension benefit guaranty corporation (pbgc) that guarantees participants a certain level of pension benefits even if the plan terminates without assets. The PBGC ...
Policy that is the opposite of the traditional split dollar life insurance policy in that: the employee is the policyowner and as such can exercise all ownership rights inherit to that ...
Coverage in which premiums are collected monthly on an ordinary life insurance policy. ...
Have a question or comment?
We're here to help.