Cascading GRAT Simulator
This GRAT Simulator calculates the potential value of assets transferred to heirs at the expiration of the term of each of ten, 3-year zeroed-out ("Walton") GRATs. The GRATs are structured so that the annual payments increase geometrically by 20%.
Click on the dollar amount in Step 2 to change the value of the assets transferred to the initial GRAT. The Section 7520 rate and the annual growth rate for all GRATs can be set by selecting the rates using the drop-down list for each of those factors.
If you want to vary the Section 7520 rate or the rate of return for one or more of the GRATs, scroll to the top of the drop-down list for the Section 7520 Rate and the Annual Growth Rate and select "Variable." You will then be able to use the drop-down lists in the "Variable Rate Assumption Table" to choose varying rates for one or more of the successive GRATs.
Click on the located in the results section for each GRAT to view a Diagram of hypothetical results for that GRAT and all of the preceding GRATs.
Important Notice: The results shown for each of the GRATs below are hypothetical and cannot be relied upon in determining the potential outcome of any estate planning strategy. You must consult with qualified legal, financial and tax professionals before implementing this or any other estate planning strategy.