Grantor Retained Annuity Trust (grat)
Irrevocable trust into which the grantor places assets and receives in turn a fixed amount of income from a fixed annuity (amount of income stipulated at the time the trust is established) 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 assets in the trust fail to generate sufficient income to make the required annuity payments, the principal of the asset on deposit in the trust must be liquidated in an amount needed to meet the required income payments. This principal could diminish dramatically by the time it is transferred to the 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
Reductions in the value of property due to physical damage or destruction. ...
Provision found in current assumption whole life insurance policies under which the insurance company retains the contractual right to recalculate the premium (after a minimum period of ...
States that allow the placement of surplus lines only with insurance companies that the states have approved. ...
Insured losses that have occurred but have not been reported to a primary insurance company. These types of claims have a tremendous effect on a reinsurance treaty, which may be showing a ...
Fire that spreads substantial destruction. ...
Same as term Occurrence Basis: coverage, in liability insurance, for harm suffered by others because of events occurring while a policy is in force, regardless of when a claim is actually ...
Total of operating income plus realized capital gains (losses) from investment and underwriting operations minus federal income taxes. ...
basic feature of the social security act under which benefits paid are associated with the employee's earnings that have been taxed during the employment period. ...
Act that makes the liability cost for cleanup joint and several. Even if a party is only partially responsible for losses inflicted, that party may be liable for the payment of the total ...

Have a question or comment?
We're here to help.