The Treasury Department’s General Explanation of the Administration’s Fiscal Year 2016 Revenue Proposals, or Greenbook, released earlier this month on February 2, echoed goals and concerns seen in previous year’s Greenbooks from the Obama Administration, but with more bite. The 2016 Greenbook more aggressively attacks grantor retained annuity trusts (GRATs) through proposals that would both increase the market and mortality risks of GRATs. The proposals would limit the use of short-term GRATs, by requiring a minimum 10 year term and eliminating the ability to have a zero remainder interest.
See James Dougherty & Eric Fischer, President Obama “Steps Up” Attack On Estate Planning Techniques, Wealth Management, Feb. 11, 2015.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
