Former Florida Gov Rick Scott Used Loophole To Avoid Taxes
ProPublica is calling out Rick Scott, accusing him of benefiting from a tax loophole. The practice is perfectly legal.
Rick Scott is one of the wealthiest senators, and once ran one of the world’s largest health care companies.
Grantor Retained Annuity Trust
A grantor retained annuity trust (GRAT) is a financial instrument used in estate planning to minimize taxes on large financial gifts to family members. Under these plans, an irrevocable trust is created for a certain term or period of time. The individual establishing the trust pays a tax when the trust is established. Assets are placed under the trust and then an annuity is paid out every year. When the trust expires the beneficiary receives the assets tax-free.