All three techniques also provide the transferor with an income stream for a fixed period. Finally, all three techniques take advantage of the actual rate of return on the transferred assets as compared to the assumed rate of return utilized by the IRS to value the transferred asset. Yet each technique has its advantages and disadvantages when compared to the others.
Comparing GRATs, Sales to Grantor Trusts and Private Annuities | structuredsettlementnews.net