What is Grantor-retained Unitrust?

Legal Definition
A form of Grantor-Retained Trust, the Grantor-Retained Unitrust Trust (commonly referred to as GRUT) is set up when a donor makes a donation to a trust. For a fixed period of time, the donor will receive annual payments of a fixed percentage of the net fair market value of the trust assets (determined annually). At at the end of the time the remaining value of the trust will be passed to the beneficiary.