Final Exam

Which of the following is true regarding a Grantor Retained Annuity Trust (GRAT)?

Select one: a. At the end of the GRAT term, a taxable gift occurs. b. If the grantor dies during the trust term, a pro rata portion of the trust assets will be included in the grantors estate. c. Interest and dividends earned by assets in a GRAT are taxed to the grantor. d. If the grantor survives the trust term, all of the trust assets will be included in the grantors estate.