Grantor retained income refers to an arrangement where a grantor transfers property to a trust but retains a right to the trust's income for a period. The retention can drive estate-tax inclusion under 2036 and, depending on powers, grantor-trust treatment for income tax. Grantor retained income structures (e.g., GRITs for non-lineal beneficiaries) are used to shift remainder interests while the grantor enjoys cash flow. Design must balance cash needs, tax exposure, and investment policy.

Planners use grantor-retained income structures to shift remainder value to heirs while the grantor keeps cash flow. Advisors weigh 2036 estate inclusion risk and select assets that balance yield with growth for the intended horizon.