As we have previously reported, the Small Business Jobs Tax Relief Act of 2010, passed by the House on June 15, 2010, included provisions that would make grantor retained annuity trusts (GRATs) less attractive to wealthy individuals. As the Senate considered the bill this week, the question remained whether the Senate's version would also impose a 10-year minimum term for GRATs and require that the remainder of any GRAT be greater than zero. According to an updated published by Cole Schotz, the Senate's version of the bill does not include the limitations on GRATs. However, the update notes that the GRATs restrictions may eventually be included since the House and Senate versions of the bill will ultimately have to be reconciled.
See, Cole Schotz, GRAT Legislation Update.
For our prior coverage on the GRATs legislation, click here and here.
Posted by Wesley J. Bailey, Associate Editor, Wealth Strategies Journal.
Leave a comment