Long Live the GRAT

Grantor retained annuity trusts (GRATs) have long been a darling of estate planners. Properly designed, they can transfer future growth in value to family beneficiaries free of gift tax risk. Recently proposed Internal Revenue Service regulations make GRATs even more attractive by reducing the estate tax risks traditionally associated with long-term GRATs. A GRAT is a trust that pays an annuity to

Grantor retained annuity trusts (GRATs) have long been a darling of estate planners. Properly designed, they can transfer future growth in value to family beneficiaries free of gift tax risk. Recently proposed Internal Revenue Service regulations make GRATs even more attractive by reducing the estate tax risks traditionally associated with long-term GRATs.

A GRAT is a trust that pays an annuity to the trust creator (the grantor) for a fixed term, then pays the trust balance to remaind

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