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Texas Tech Univ. School of Law

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Monday, July 7, 2014

GRAT Remainder Interest is Property in Colorado

GavelThe Colorado Court of Appeals recently heard a case between a divorcing couple, to decide whether the husband’s remainder interest in a grantor retained annuity trust (GRAT) constituted a “property interests” and thus could be divided as marital property. The trial court found that it was a property interest.

In Malias v. Malias, the appeals court affirmed the trial court that the remainder interest from the GRAT was a property interest, because it was set at a fixed amount. The court further affirmed the lower court’s valuation of the property based on reported gift tax. However, the court also noted that gift tax was the only available way of valuing the property in this case.

See Michelle St. Pierre, Colorado Court Leaves Valuation Questions Unanswered When Valueing GRAT Appreciation, JD Supra, July 2, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2014/07/grat-remainder-interest-is-property-in-colorado.html

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