GRATs Targeted by Budget Proposal

The benefits of limiting gift tax and historically low IRS rates create favorable circumstances for the popularity of grantor retained annuity trusts (GRATs). However, the Obama administration’s 2016 budget proposal could limit GRATs as another proposed way of increasing tax revenue.

See Thomas W. Abendroth, William R. Franzen & Harmon A. Brown, Obama Administration Targets GRATs, a Powerful Estate Planning Technique, National Law Review, May 4, 2015.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.