A grantor retained annuity trust (GRAT) is most effective as a succession planning tool when which condition is met?
-
A
Interest rates are high and the business is expected to decline in value
-
B
The business appreciates significantly above the IRS Section 7520 hurdle rate
-
C
The grantor is in poor health and unlikely to outlive the trust term
-
D
The estate is below the federal exemption amount