Grantor retained income trust guide
A grantor retained income trust, or GRIT, is reviewed when a grantor wants to transfer property while keeping an income interest for a stated period. Like other retained-interest structures, it is considered advanced planning because the retained interest, beneficiary relationship, valuation issues, and trust term can all affect the result.
Last reviewed: March 9, 2026
Reviewed against: trust and estate planning references listed on the sources page.
Publisher: Larry Trustee AI Editorial Team | hello@larrytrustee.ai
How a GRIT is usually structured
The trust receives assets, the grantor retains a specified income interest for the term, and the remainder is designed to pass under the trust after that period. Because the structure is more specialized than a simple annuity or unitrust design, GRIT review is usually paired with broader retained-interest planning analysis.
Why people compare GRITs with other retained-interest trusts
- To compare an income-interest design with a GRAT or GRUT.
- To review whether the retained-income format matches the assets being transferred.
- To analyze whether the family relationship and trust design fit the planning goal.
- To compare long-term transfer outcomes across several advanced trust structures.
What should be reviewed before using one
- Whether the assets fit an income-interest retained structure.
- Whether the beneficiary design is appropriate for the planning goal.
- Whether the retained-income term and trust mechanics are practical.
- Whether a GRIT, GRAT, or GRUT is the better fit for the intended transfer plan.