GRAT ExpectationsGRAT Expectations
Somewhere in a bleak house in Washington, D.C.a plot exists. The conspirators are working against a favorite planning tool, the grantor retained annuity trust (GRAT). Bill after bill has been born to limit the flexibility and power of the GRAT.1 The authors of these legislative works have great expectations to oppress this popular idea. These proposed changes would include requiring a GRAT term of
Robert T. Napier
Somewhere in a bleak house in Washington, D.C.a plot exists. The conspirators are working against a favorite planning tool, the grantor retained annuity trust (GRAT). Bill after bill has been born to limit the flexibility and power of the GRAT.1 The authors of these legislative works have great expectations to oppress this popular idea.
These proposed changes would include requiring a GRAT term of at least 10 years; requiring fixed annuity payments that, when determined on an annual basis, couldn't decrease during the first 10 years of the GRAT's term; and requiring a GRAT remainder interest that would have to be greater than zero. All these bills would be effective for transfers made after the date of enactment. It's note...
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