Wednesday, October 23, 2013
Robert L. Moshman (Attorney, New York and New Jersey) recently published his article entitled, Can GRATs Defeat State Death Taxes, The Estate Analyst (Oct. 2013). The introduction from his article is provided below:
The Treasury's latest proposal to impose limits on GRATs has ironically resulted in a round of articles suggesting a "last call" for GRATs. Are we really about to say good-bye to the GRAT? Although the impending demise of the GRAT may be greatly exaggerated, it will be hard for large estates to pass up the versatile game-changing techniques if they are truly about to be terminated.
On the other hand, most estates no longer face Federal estate tax and will benefit if the GRAT is simply repurposed to avoid state death taxes. Let us remember why we've been loving GRATs so long.