How GRATtrack pricing works
GRATtrack is billed as an annual subscription per LLC. Base Tier pricing is flat; Premium Tier adds a performance fee that applies only when locking generates value above a standard rolling GRAT baseline. This page walks through both tiers and shows a worked example of the performance fee calculation.
Base Tier
Standardized rolling-GRAT administration: creation, tracking, termination, annuity-payment documentation, and full document generation. No lock functionality, no performance fee.
Premium Tier
Everything in Base, plus automatic and manual lock functionality, related promissory-note tracking, and the potential to materially enhance transfer-tax benefits.
Performance fee — on added value only
The performance fee applies only to the additional value that Premium lock functionality generates above a standard two-year rolling GRAT baseline. No added value, no performance fee.
- 1.50% up to $2M
- 1.25% $2M – $10M
- 1.00% above $10M
How the performance fee is measured
The performance fee is measured by comparing Premium-Tier results against a standard two-year rolling GRAT benchmark.
Baseline benchmark
Actual Premium results are compared to a standard rolling two-year GRAT strategy with no lock functionality.
Cumulative, not annual
Measured in the aggregate. If the baseline is ahead at a point, the Premium must first overcome that deficit before any future fee accrues.
First measured at year 2
Initially measured on the second anniversary of the LLC's first GRAT, then on each annual anniversary.
Per LLC, no double-count
Calculated separately for each Premium LLC; amounts already counted are never counted again.
The performance fee, illustrated
Illustration assumes a $1M contribution of AMZN stock to a rolling GRAT structure on 7/2/2018. The Premium Tier locks and creates a new GRAT when the security rises 20% (plus the applicable 7520 rate) or falls 10%.
| Year | LLC Value | Base Remainder | Premium Remainder | Cumulative Advantage | New Fee Base | Performance Fee |
|---|---|---|---|---|---|---|
| 2018 | $1,000,000 | $ - | $ - | $ - | $ - | $ - |
| 2019 | $1,132,511 | $ - | $216,177 | $ - | $ - | $ - |
| 2020 | $1,717,791 | $417,576 | $697,575 | $279,999 | $279,999 | $4,200 |
| 2021 | $2,048,568 | $741,780 | $1,041,528 | $299,748 | $19,749 | $296 |
| 2022 | $1,278,313 | $741,780 | $1,229,142 | $487,362 | $187,614 | $2,814 |
| 2023 | $1,540,952 | $741,780 | $1,904,288 | $1,162,508 | $675,146 | $10,127 |
| 2024 | $2,337,063 | $1,314,449 | $2,322,473 | $1,008,024 | $ - | $ - |
| 2025 | $2,598,269 | $1,733,590 | $3,460,712 | $1,727,122 | $564,614 | $8,469 |
| 2026 | $2,876,222 | $1,880,369 | $4,774,583 | $2,894,214 | $1,167,093 | $15,271 |
| Total | $2,876,222 | $1,880,369 | $4,774,583 | $2,894,214 | $2,894,214 | $41,178 |
Illustrative example only — not a projection of future results.
Important Information
- Premium performance fees apply only when remainder trust grows more than baseline 2-year rolling GRATs.
- Lock thresholds and manual lock decisions are selected and approved by the client's professional advisors. GRATtrack does not recommend thresholds or determine whether a lock is appropriate.
- The Premium Tier does not guarantee that locking will improve results. The performance fee applies only when the Premium Tier produces qualifying incremental value above the applicable standard rolling GRAT baseline.
- All GRATtrack calculations, documents, alerts, and workflows depend on accurate and timely information entered by Administrators and remain subject to attorney and professional review.
Ready to see GRATtrack in action?
Walk through Base and Premium pricing, and the performance fee mechanics, in a live demo tailored to your firm's practice.