Grantor Retained Unitrust ( GRUT) Law and Legal Definition
Grantor-retained unitrust or GRUT is an irrevocable trust into which the grantor transfers property in exchange for the right to receive annual payments, the amount of which fluctuates based on the increase or decrease in the value of the property transferred. When the term of the trust expires, assets in the trust including any appreciation are distributed to the named remainder beneficiaries. However 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.
