# Definition of a Qualified Interest in a Grantor Retained Annuity Trust and a Grantor Retained Unitrust
> **IRS** · Final regulations. · Published 2000-09-05 · Effective 2000-09-05 · 65 FR 53587
## Document
- **Document number:** 00-22544
- **Category:** tax-irs
- **Sub-agency:** IRS
- **Federal Register citation:** 65 FR 53587
- **CFR reference:** 26 CFR 25
- **Publication date:** 2000-09-05
- **Effective date:** 2000-09-05
- **Treasury docket:** TD 8899
## Abstract

This document contains final regulations relating to the definition of a qualified interest under section 2702 of the Internal Revenue Code. The final regulations apply to a grantor retained annuity trust (GRAT) and a grantor retained unitrust (GRUT) in determining whether a retained interest is a qualified interest. These final regulations affect individuals who make a transfer in trust to a family member and retain an interest in the trust. These final regulations clarify that a trust that uses a note, other debt instrument, option, or similar financial arrangement to satisfy the annual payment obligation does not meet the requirements of section 2702(b).

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2000/09/05/00-22544/definition-of-a-qualified-interest-in-a-grantor-retained-annuity-trust-and-a-grantor-retained)
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