High Net Worth Planning Through Grantor Retained Annuity Trusts (GRATs) and Qualified Personal Resid
By: Joshua B. Glaser, Esq., LL.M. - September 21, 2017
Individuals with taxable estates are always looking for efficient ways to plan for the eventual estate tax. Two popular estate planning techniques that provide individuals with the ability to do so are Grantor Retained Annuity Trusts (GRATs) and Qualified Personal Residence Trusts (QPRTs). As described in more detail below, these techniques provide a taxpayer with the ability to transfer assets outside of his or her estate at their current, or even discounted value. Since the asset will be transferred out of a taxpayer’s estate now, all future appreciation attached to the asset will be exempt from the estate tax.
** Disclaimer Required by IRS Circular 230** Unless otherwise expressly approved in advance by the undersigned, any discussion of federal tax matters herein is not intended and cannot be used 1) to avoid penalties under the Federal tax laws, or 2) to promote, market or recommend to another party any transaction or tax-related matter addressed.