1. Congress Grapples with GRATs.
- Author
-
RACUSIN, WARREN K.
- Subjects
SMALL business laws ,LOANS ,ANNUITIES ,GRANTOR trusts ,TRUSTS & trustees - Abstract
The article discusses the potential impact of the 2010 Small Business Lending Fund Act on the grantor retained annuity trust (GRAT), which enables an individual to bestow assets on his or her children or other beneficiaries at little or no gift or estate tax cost. The legislation requires a minimum ten-year term for all new GRAT and eliminates the ability to create a GRAT without causing a taxable gift. Individuals are encouraged to create a short-term GRAT when interest rates are low.
- Published
- 2010