Walton GRAT / Zeroed-Out GRAT
GRAT Calculator
Transfer wealth tax-free. If your assets outgrow the IRS §7520 hurdle rate, the excess passes to your heirs free of gift tax.
Annual Annuity Paid Back to You
$0
Assumes Zeroed-Out (No taxable gift upfront).
Tax-Free Transfer to Heirs
$0
The excess growth above the 7520 rate.
Citation: Internal Revenue Code (IRC) § 2702 and Walton v. Commissioner, 115 T.C. 589 (2000). A "Zeroed-Out" GRAT structuring ensures the present value of the annuity payments equals the initial contribution, resulting in a taxable gift of $0.