Estate planning vehicles --such as grantor retained annuity trusts
(GRATs) and family limited partnerships (FLPs)--can enable owners to gift business interests at substantial discounts from the net asset values of the entity's underlying assets.
Specifically, I am referring to the use of family limited partnerships, grantor retained annuity trusts
(GRATs) and installment sales to a grantor trust.
Transfer-of-ownership tools: Consider all the tools for the tax-efficient transfer of ownership, including stock gifts, stock sales, self-canceling installment notes, grantor retained annuity trusts
, redemptions, employee stock ownership plans, charitable remainder unitrusts, family limited partnerships, and intentionally defective grantor trusts.
Calculate "GRATs" - a tool to permit the quick analysis of the feasibility of various forms of Grantor Retained Annuity Trusts
under varying assumptions as to amount, interest rate, term and percentage increases in payments
With more than a decade of experience, Lawton has prepared traditional and complex wills, guardianship avoidance documents, and revocable and irrevocable trusts, including intentionally defective grantor trusts, grantor retained annuity trusts
, life insurance trusts, charitable lead trusts, and charitable remainder trusts.
check] Plan to implement grantor retained annuity trusts
(GRATs), if they make sense for your clients, since their benefits could be curtailed.
Portability would be retained, but valuation discounts and severable taxpayer-friendly planning strategies such as grantor retained annuity trusts
(GRATs) and dynasty trusts would face new restrictions that could significantly curtail their value.
5982)--which contained 13 provisions the House had previously approved in other legislation-nine of them affecting multinationals and one requiring a minimum 10-year term for grantor retained annuity trusts
Consider grantor retained annuity trusts
(GRATs), sales to intentionally defective grantor trusts (IDGTs) or other interest sensitive planning techniques.
This article will discuss, in general terms, various wealth transfer opportunities, such as intra-family loans, outright gifts, sales to intentionally defective grantor trusts (IDGTs), grantor retained annuity trusts
(GRATs) and charitable lead annuity trusts (CLATs), that may be appropriate during this turbulent economic environment.
Grantor Retained Annuity Trusts
(GRATs), for example, allow current gifts of a future interest at a discounted present value.
This method of computing the annual annuity is commonly used in grantor retained annuity trusts