--- title: "GRAT Attorney | Grantor Retained Annuity Trust | Legacy Counsel" description: "GRATs shift appreciation on concentrated stock and pre-IPO equity to the next generation with little or no gift tax." lang: en json-ld: | [ { "@context": "https://schema.org", "@graph": [ { "@type": "LegalService", "@id": "https://jacobslegacycounsel.com/#legalservice", "name": "Jacobs Legacy Counsel", "alternateName": [ "Legacy Counsel by Jacobs Counsel", "Jacobs Legacy" ], "url": "https://jacobslegacycounsel.com", "description": "Fixed-fee estate planning for high-net-worth families, founders, executives, and professional athletes. Licensed in New York, New Jersey, and Ohio.", "logo": "https://jacobslegacycounsel.com/logo-dark.jpg", "image": "https://jacobslegacycounsel.com/og-image.jpg", "telephone": "+1-646-343-7227", "email": "intake@jacobscounsellaw.com", "priceRange": "Fixed-fee engagements", "address": { "@type": "PostalAddress", "streetAddress": "221 River Street, Floor 9", "addressLocality": "Hoboken", "addressRegion": "NJ", "postalCode": "07030", "addressCountry": "US" }, "areaServed": [ { "@type": "State", "name": "New York" }, { "@type": "State", "name": "New Jersey" }, { "@type": "State", "name": "Ohio" } ], "knowsAbout": [ "Estate planning", "Revocable living trusts", "Irrevocable trusts", "Dynasty trusts", "Asset protection planning", "Generation-skipping transfer tax planning", "Estate planning for professional athletes", "Estate planning for founders and executives", "QSBS planning", "Pre-liquidity estate planning", "Probate and trust administration" ], "contactPoint": { "@type": "ContactPoint", "telephone": "+1-646-343-7227", "email": "intake@jacobscounsellaw.com", "contactType": "client intake", "areaServed": [ "US-NY", "US-NJ", "US-OH" ], "availableLanguage": [ "en" ] }, "founder": { "@id": "https://jacobscounsellaw.com/about/drew-jacobs#person" }, "employee": { "@id": "https://jacobscounsellaw.com/about/drew-jacobs#person" }, "parentOrganization": { "@type": "LegalService", "@id": "https://jacobscounsellaw.com/#legalservice", "name": "Jacobs Counsel LLC", "url": "https://jacobscounsellaw.com" }, "sameAs": [ "https://jacobscounsellaw.com", "https://www.linkedin.com/company/jacobs-counsel", "https://www.instagram.com/jacobscounsel" ] }, { "@type": "WebSite", "@id": "https://jacobslegacycounsel.com/#website", "url": "https://jacobslegacycounsel.com", "name": "Jacobs Legacy Counsel", "publisher": { "@id": "https://jacobslegacycounsel.com/#legalservice" }, "inLanguage": "en-US" }, { "@type": "Person", "@id": "https://jacobscounsellaw.com/about/drew-jacobs#person", "name": "Andrew R. Jacobs, Esq.", "alternateName": "Drew Jacobs", "url": "https://jacobscounsellaw.com/about/drew-jacobs", "jobTitle": "Founder & Managing Attorney", "worksFor": { "@id": "https://jacobscounsellaw.com/#legalservice" }, "sameAs": [ "https://jacobslegacycounsel.com", "https://www.linkedin.com/in/drew-jacobs-dj32/", "https://www.instagram.com/jacobscounsel", "https://profiles.superlawyers.com/new-york-metro/hoboken/lawyer/andrew-jacobs/5765bbd8-0554-4eb5-be6d-0431db28f834.html", "https://www.avvo.com/attorneys/07030-nj-andrew-jacobs-5765bbd8.html", "https://iapps.courts.state.ny.us/attorneyservices/search?lastName=jacobs&firstName=andrew" ] } ] }, [ { "@context": "https://schema.org", "@type": "WebPage", "name": "GRAT Attorney — Grantor Retained Annuity Trusts", "description": "GRATs shift appreciation on concentrated stock and pre-IPO equity to the next generation with little or no gift tax.", "url": "https://jacobslegacycounsel.com/grat-attorney", "isPartOf": { "@type": "LegalService", "name": "Legacy Counsel by Jacobs Counsel LLC", "url": "https://jacobslegacycounsel.com" } }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What happens if I die during the GRAT term?", "acceptedAnswer": { "@type": "Answer", "text": "The remaining trust assets are pulled back into your estate as if the GRAT never happened." } }, { "@type": "Question", "name": "Do GRATs use my lifetime exemption?", "acceptedAnswer": { "@type": "Answer", "text": "A properly structured \"zeroed-out\" GRAT uses essentially none of your exemption." } }, { "@type": "Question", "name": "Can I use a GRAT with pre-IPO stock?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, and it is one of the highest-leverage uses." } }, { "@type": "Question", "name": "How is a GRAT different from a SLAT?", "acceptedAnswer": { "@type": "Answer", "text": "A GRAT is an estate-freeze tool that uses minimal exemption." } } ] } ], { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://jacobslegacycounsel.com/" }, { "@type": "ListItem", "position": 2, "name": "Grat Attorney", "item": "https://jacobslegacycounsel.com/grat-attorney" } ] } ] --- A Practice of [Jacobs Counsel LLC](https://jacobscounsellaw.com) Serving NY · NJ · OH — Vol. 2026 [Legacy Counsel ](/) Firm Resources Estate Planning Trusts [Probate & Admin](/probate-trust-administration)[Pricing](/pricing)[Book Call](https://cal.com/drewjacobs/estate-planning)[Start Intake](/get-started) Menu 1. [Home](/) 2. Grat Attorney GRAT Legacy Counsel # GRAT Attorney — Grantor Retained Annuity Trusts Quick answer: A Grantor Retained Annuity Trust (GRAT) is an irrevocable trust you fund with an asset expected to appreciate. [Start Intake](/get-started)[Book a Consultation](https://cal.com/drewjacobs/estate-planning) Key Points - ◆ Who it is for: founders pre-exit, executives with RSUs and concentrated stock, owners of rapidly appreciating private companies - ◆ What it solves: transferring future appreciation out of the estate with little or no use of lifetime exemption - ◆ Works best with volatile or pre-IPO assets where actual appreciation will outrun the IRS §7520 hurdle rate - ◆ Grantor must survive the term — short "rolling GRATs" mitigate mortality risk ## How a GRAT works You transfer an asset (e.g., founder stock) to the GRAT. If the asset does not outperform the hurdle, the GRAT simply unwinds. ## Common mistakes we fix Funding a GRAT with a slow-growing or income-only asset that cannot beat the hurdle rate. Single long-term GRATs instead of rolling short-term GRATs, which compound winners and bury losers. Failing to coordinate with §83(b), QSBS, and Rule 144 issues for founder stock. ## New York, New Jersey & Ohio considerations New York: GRATs are widely used by NYC executives and founders to move RSU and pre-IPO equity appreciation out of the New York estate tax cliff. New Jersey: no state estate tax, but GRATs remain a core tool for founders with NJ residency and significant equity positions. Ohio: founder-friendly trust environment; GRATs combined with Ohio dynasty trusts can move appreciation out of estate and into a long-term generational structure. ## How Legacy Counsel helps We coordinate GRAT funding with company counsel, the cap table, and your wealth advisor — including QSBS stacking where eligible. Frequently Asked What happens if I die during the GRAT term? + The remaining trust assets are pulled back into your estate as if the GRAT never happened. Do GRATs use my lifetime exemption? + A properly structured "zeroed-out" GRAT uses essentially none of your exemption. Can I use a GRAT with pre-IPO stock? + Yes, and it is one of the highest-leverage uses. How is a GRAT different from a SLAT? + A GRAT is an estate-freeze tool that uses minimal exemption. Related - [All Trusts](/trusts) - [Irrevocable Trusts](/irrevocable-trust-attorney) - [SLATs](/slat-attorney) - [Dynasty Trusts](/dynasty-trust-attorney) - [QSBS Stacking](/qsbs-stacking) Next Step ### Talk to Legacy Counsel. Fixed-fee estate planning for clients in New York, New Jersey, and Ohio. [Start Intake](/get-started)[Book a Consultation](https://cal.com/drewjacobs/estate-planning) Drew Jacobs is licensed in New York, New Jersey, and Ohio. Nothing on this page constitutes legal advice or an offer to represent you in a jurisdiction in which we are not licensed. **Prospective Client Disclaimer.** Submitting this form does not create an attorney-client relationship. Do not send confidential or time-sensitive information until we have signed an engagement letter. We will review your submission and follow up to discuss whether we can represent you. By submitting, you consent to be contacted about your inquiry. Estate Planning & Legacy Counsel Legacy Counsel by Jacobs Counsel. Fixed-fee estate planning, trusts, wills, and generational wealth strategy for high-net-worth families. 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All rights reserved. Attorney Advertising. Prior results do not guarantee a similar outcome. **Jurisdiction.** Drew Jacobs is licensed to practice law in New York, New Jersey, and Ohio . Estate planning is highly state-specific — laws governing wills, trusts, probate, estate and inheritance tax, and asset protection vary materially by jurisdiction. We represent clients whose residence, primary assets, or business interests are situated in NY, NJ, or OH. For matters involving other states, we coordinate with qualified local counsel. Nothing on this site constitutes legal advice or an offer to represent you in a jurisdiction in which we are not licensed.