GRAT Maximization

Jonathan G. Blattmachr (partner, New York office of Milbank, Tweed, Hadley & McCloy LLP), Diana S.C. Zeydel (shareholder, Miami office of Greenberg Traurig, P.A.), and Austin W. Bramwell (associate, New York office of Milbank, Tweed, Hadley & McCloy LLP) have recently published their article entitled Drafting and Administration to Maximize GRAT Performance, Prob. & Prop., Nov./Dec. 2006, at 16.

Here is the introduction to their article:

Grantor retained annuity trusts (GRATs) continue to be an important estate planning strategy because of the unique leveraging opportunities they present.  This article discusses some of the key legal and economic factors that determine the “success” of a GRAT from an estate and gift tax perspective.  It also discusses determining appropriate assets which which to fund a GRAT, drafting provisions to reduce potential adverse effects relating to certain legal uncertainties surrounding GRATs, and preventing a GRAT from being “disqualified” by reason of improper administration.