Tax Law Update

House passes bill to restrict GRAT terms — On March 24, the House passed H.R. 4849, the Small Business and Infrastructure Jobs Tax Act of 2010, which includes an amendment to Internal Revenue Code Section 2702 imposing a minimum term of 10 years for grantor retained annuity trusts (GRATs). Under IRC Section 2702, if an individual transfers an interest in a trust to a family member while retaining an interest in the same trust, the value of the retained interest is zero,