In part two, we discuss when a grantor retained annuity trust (GRAT), a type of irrevocable trust, is appropriate to help you retain more of your inherited wealth keeping your tax consequences to a minimum.  When setting up a GRAT, the grantor specifies a term then transfers specific assets into the trust.  The grantor then receives fixed, annual annuity payments for the term of the GRAT set at a rate in accordance with IRS guidelines.  When the term expires, whatever assets remain in the grantor retained annuity trust are distributed to the trust beneficiaries.