Tuesday, July 06, 2010

GRATs

Both the House and the Senate are considering changes to the taxation of GRATs that would greatly reduce the estate and gift tax savings that GRATs generate. The changes would prohibit the establishment of short-term GRATs by requiring a minimum term of 10 years.  In addition, it would eliminate zeroed-out GRATs by requiring that there be a minimum amount in the GRAT at the end of its term.  Therefore, if any of your clients are considering establishing a GRAT or you are recommending a GRAT to your clients the GRAT should be established now, before any change is effective.  If you or your clients require any assistance please call our office and speak to Neil or Bob.