Understand My Trust Document

My Trust Guide is an AI-powered tool designed for financial advisors to quickly analyze and understand trust documents. It automatically identifies trust types, key parties, distribution terms, and tax implications, saving hours of manual review time.

A CRUT is a tax-exempt irrevocable trust that allows you to donate assets to charity while retaining income for life or a specified term. The donor receives a charitable tax deduction and annual payments based on a percentage of the trust's value, which is revalued annually.

An IDGT is an estate planning trust that is "defective" for income tax purposes but not for estate tax purposes. The grantor pays income taxes on trust earnings, allowing assets to grow tax-free for beneficiaries while reducing the grantor's taxable estate.

A GRAT is an irrevocable trust where the grantor transfers assets and retains the right to receive annuity payments for a specified term. If the assets appreciate above the IRS hurdle rate, the excess appreciation passes to beneficiaries with minimal gift tax impact.

CRUTs eliminate immediate capital gains taxes by allowing you to donate appreciated assets to the trust without recognizing the gain. The trust can sell the assets tax-free and reinvest the proceeds. You receive a charitable deduction and income payments, while spreading any tax liability over the trust's term through the makeup provisions.

IDGTs and GRATs are powerful wealth transfer strategies. IDGTs allow you to freeze estate values while future appreciation passes to beneficiaries tax-free, with the grantor paying income taxes to further reduce the estate. GRATs transfer asset appreciation to heirs at minimal gift tax cost by retaining annuity payments and passing excess growth beyond the IRS hurdle rate.