On January 28 at the 2010 Heckerling Institute on Estate Planning, Mark Parthemer presented a session on enhancing GRATs, grantor trust sales, and family loans with financial engineering. The session included a discussion of diversification in relation to GRATs, which Parthemer suggested should be considered globally when diversifying. Parthemer also covered annuity structures in relation to GRATs, including swap powers in GRATs to lock in gains occuring during the GRAT term, recharacterizing converted IRAs back into traditional IRAs from Roth IRAs where the assets inside the IRAs have depreciated in value, using grantor trusts to make family loans, and the optimal terms for installment notes when used in a sale to an intentionally defective grantor trust.
See also the American Bar Association's Heckerling Institute reports.
Posted by Jenny Robertson, Associate Editor, Wealth Strategies Journal.
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