GRATtrack FAQ

Important Notice

Core Product Questions

What is GRATtrack?

GRATtrack is a technology platform designed to help professionals manage, monitor, and document rolling GRAT strategies more efficiently. GRATtrack assists with performance tracking, administration timelines, document organization, and document automation workflows for grantor retained annuity trusts.

Who can use GRATtrack?

GRATtrack is designed primarily for professionals involved in the implementation and administration of GRAT strategies, including estate planning attorneys, family office professionals, wealth advisors, and other professional advisors.

Attorneys, advisors, and family offices may use GRATtrack to help manage GRAT-related workflows for their clients or family members. At least one attorney must be designated as an Editor to receive documents generated from GRATtrack's platform and assist with onboarding template documents.

Individuals may not access the platform unless an attorney or other professional advisor is involved. If desired, the individual client may be granted Viewer access to the platform.

How does GRATtrack work?

GRATtrack is designed around a standardized rolling GRAT structure. Each GRAT must own an interest in a limited liability company (“LLC”), and the LLC holds up to five marketable securities traded on a U.S. exchange. When a GRAT is created, the client transfers interests in the LLC to the GRAT.

Using an LLC as an intermediary can help reduce the administrative burden of managing a rolling GRAT structure. Rather than transferring individual marketable securities directly to and from each GRAT, the GRAT administration can be handled through transfers of LLC interests. This helps create a more consistent and manageable process for tracking GRAT funding, annuity payments, remainder transfers, and related documentation.

What initial steps are required before using GRATtrack?

Before using GRATtrack for a client, the attorney must complete certain foundational steps for the GRAT structure. These include creating an LLC or confirming that an existing LLC will be used, opening a brokerage account for the LLC, and preparing and having the applicable parties execute a remainder trust for the client.

A client may have multiple LLCs on GRATtrack's platform, each with its own set of corresponding GRATs. If more than one LLC will be used, the applicable setup steps should be completed for each LLC.

The user must also register for GRATtrack, create a login, and complete the applicable onboarding steps within the platform. Once these steps are completed, GRATtrack can assist with the ongoing tracking, administration, reporting, and document automation workflows associated with the client's rolling GRAT structure or structures.

How does GRATtrack help with rolling GRAT administration?

Rolling GRAT strategies can require ongoing monitoring, repeated document preparation, valuation tracking, annuity payment documentation, and careful coordination among attorneys, advisors, trustees, and family offices.

GRATtrack helps professionals organize and streamline these administrative steps. The platform is designed to help track key dates, monitor asset performance, generate and organize implementation documents, maintain records of GRAT activity, and identify when additional GRAT-related actions may be appropriate.

For rolling GRAT structures, GRATtrack is designed to support repeatable workflows so that each new GRAT can be implemented and documented in a consistent manner.

Documents and Workflow

Does GRATtrack provide or generate GRAT documents?

Yes. GRATtrack can provide template documents for use with its document automation process. Attorneys are also strongly encouraged to provide their own template documents, which GRATtrack can onboard and code for use within the platform.

GRATtrack can assist with document automation by populating template documents with information provided by the user or professional. These may include GRAT trust agreements, assignments, purchase agreements, promissory notes, and related implementation documents, depending on the workflow selected.

Any template documents used with GRATtrack should be reviewed, customized, and approved by the client's attorney before use.

Can attorneys use their own template documents?

Yes. Attorneys are strongly encouraged to provide their own template documents for use with GRATtrack's document automation process. GRATtrack can onboard and code attorney-provided templates so that documents generated through the platform are prepared using the attorney's preferred forms, language, and structure.

Using attorney-provided templates allows the attorney to review documents in a familiar format and helps support a more consistent implementation process across each GRAT.

What types of documents can GRATtrack generate?

GRATtrack can generate documents related to the implementation and administration of rolling GRAT structures. These may include GRAT trust agreements, assignments of LLC interests, purchase agreements, promissory notes, assignments of promissory notes, annuity payment documentation, remainder transfer documentation, and related implementation records, depending on the selected workflow.

Who receives documents generated through GRATtrack?

When an event occurs that requires GRAT-related documents, such as an auto-lock, manual lock, annual administration event, or termination, GRATtrack generates the applicable documents based on the attorney's designated templates and emails them to all Editors for the applicable client.

The documents are also available within GRATtrack's platform to all Editors and Viewers with access to that client.

Base Tier and Premium Tier

What is the difference between the Base Tier and Premium Tier?

The Base Tier is designed to support a standardized rolling GRAT administration workflow without performance-based locking. It helps track GRATs, document required steps, organize annuity payments, and generate implementation documents.

The Premium Tier is designed to add performance-based monitoring and lock functionality. This may help professionals identify when appreciation or depreciation has occurred and when a new GRAT or related transaction may be appropriate.

What does “locking” mean in the Premium Tier?

In the Premium Tier, “locking” refers to the process of identifying and documenting a point at which appreciation or depreciation in a GRAT is captured through a GRAT-related transaction. When a lock occurs, the individual client purchases the applicable assets from the GRAT in exchange for a promissory note. After the lock transaction is completed, the GRAT's primary asset is the promissory note rather than the underlying LLC interests or marketable securities.

GRATtrack allows the user to establish automatic lock thresholds. If those thresholds are met, GRATtrack can automatically generate the related documentation and initiate the applicable workflow based on the pre-established settings. This allows the Premium Tier to help reduce ongoing market exposure within a particular GRAT after a specified result has been reached.

Lock thresholds should be selected, reviewed, and approved in advance by the client's applicable professional advisors.

GRAT Administration

Can GRATtrack be used for existing GRATs, or only new GRATs?

GRATtrack is designed primarily for new GRATs. However, an existing rolling GRAT structure may be transitioned to the platform if it is compatible with GRATtrack's required structure and onboarding requirements.

Can GRATtrack support multiple GRATs for the same client or family?

Yes. GRATtrack is designed to support multiple GRATs for the same client, family, trust structure, or family office.

This is especially useful for rolling GRAT strategies, where multiple GRATs may be created over time and must be tracked separately while still being viewed as part of a broader family wealth transfer plan.

Does GRATtrack provide reminders for annuity payment deadlines?

Yes. GRATtrack is designed to help track key GRAT administration dates, including annuity payment deadlines. GRATtrack will email applicable documentation to each Editor when an event related to that GRAT requires action.

Access and Permissions

How do user permission levels work in GRATtrack?

GRATtrack has two user permission levels: Editor and Viewer.

An Editor has full access to the platform and can add, revise, update, or delete information within the applicable account or subscribed entity. This includes the ability to manage GRAT information, update inputs, access generated documents, and make other changes within the platform.

A Viewer has read-only access. Viewers can review information within the platform, but they cannot edit data, change settings, or otherwise make changes to the account.

Data and Platform Access

Does GRATtrack access financial account data?

No. GRATtrack does not access raw financial account data from brokerage accounts, financial institutions, or other custodians. GRATtrack relies on information entered or updated by Editors within the platform.

Can data be entered manually?

Yes. Data can be entered and updated manually by Editors within GRATtrack's platform. This allows Editors to maintain current information for each client, LLC, and corresponding GRAT structure.

Because GRATtrack does not access raw financial account data, accurate and timely manual updates are important to the platform's tracking, reporting, reminder, and document automation workflows.

How does GRATtrack protect client data?

GRATtrack is designed to protect client data through role-based access controls, platform permissions, and secured access rules. Users are assigned permission levels, such as Editor or Viewer, so that access can be limited based on the user's role with respect to a particular client or subscribed entity.

GRATtrack uses standard encryption for data in transit and at rest provided by its cloud infrastructure vendor, Firebase/Google Cloud. Access to client information within the platform is controlled through platform permissions and access rules.

GRATtrack also does not access raw financial account data from brokerage accounts, financial institutions, or other custodians. Instead, the platform relies on information entered or updated by Editors, which helps limit the types of financial information maintained within the platform.