Skip navigation

Reverse Focardi

In Focardi v. Commissioner,1 the Tax Court has once again shown a taxpayer the door in the case of a grantor retained annuity trust (GRAT) with a revocable annuity payable to the grantor and the grantor's spouse2 (a two-life annuity). The Tax Court's opinion makes it clear that the taxpayer lost; what's less clear is why. A look at the Tax Court's previous cases on two-life annuities helps to explain

In Focardi v. Commissioner,1 the Tax Court has once again shown a taxpayer the door in the case of a grantor retained annuity trust (GRAT) with a revocable annuity payable to the grantor and the grantor's spouse2 (a two-life annuity). The Tax Court's opinion makes it clear that the taxpayer lost; what's less clear is why. A look at the Tax Court's previous cases on two-life annuities helps to explain the confusion. And a look at the legislative history of Internal

All access premium subscription

Please Log in if you are currently a Trusts & Estates subscriber.


If you are interested in becoming a subscriber with unlimited article access, please select Subscription Options below.


Questions about your account or how to access content?


Contact: [email protected]

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish