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Let's Not Overstate the Benefits Of Short-Term Rolling GRATs

We read with great interest GRATs: On a Roll by Julie K. Kwon and Daniel J. Loewy in the June issue. Their article concluded that short-term rolling GRATs can, depending on the circumstances, meet wealth transfer objectives better than a single long-term GRAT and even a sale to a grantor trust. In one example cited, a $5 million rolling GRAT series transferred $900,000 more than a GRAT with an annuity

We read with great interest “GRATs: On a Roll” by Julie K. Kwon and Daniel J. Loewy in the June issue. Their article concluded that short-term rolling GRATs can, depending on the circumstances, meet wealth transfer objectives better than a single long-term GRAT and even a sale to a grantor trust. In one example cited, a $5 million rolling GRAT series transferred $900,000 more than a GRAT with an annuity growing at 20 percent a year (a “laddered GRAT”) over a five-year period and nearly $2

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