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Making sense of the alphabet soup of trusts.

By March 31, 2014 No Comments

Ning, Ding, Grat. Ilit, Crat, Crut, Qtip. And for those with short memories, Slats.

Is this code? The output of a broken keyboard? No, they’re acronyms that are commonly bandied about when discussing trusts. Always a rarefied space, the world of trusts is now awash in Washington-style shorthand. Unlike with that alphabet soup of government agency jargon, spelling out the names of these acronyms does not necessarily make it clear what the trust does. A Grat, for example, is a grantor-retrained annuity trust, but it has nothing to do with annuities or insurance of any kind.

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