Which statement about a GRAT is correct?

Which statement about a GRAT is correct?

• A. It transfers future appreciation with minimal current gift; success depends on asset outperforming the hurdle rate.
• B. It transfers current income to heirs with large present value gift.
• C. It is a charitable remainder trust.
• D. It requires the grantor to relinquish control of the assets for life.

Answer: (A)