A GRAT Use of Life Insurance

Cordell, David M.; Langdon, Thomas P.
September 2010
Journal of Financial Planning;Sep2010, Vol. 23 Issue 9, p36
Academic Journal
The article examines the use of grantor retained annuity trust (GRANT), a technique used by estate planners to prevent the exposure of future appreciation on property to estate tax, for life insurance in the U.S. It highlights the changes proposed by President Barack Obama to the rules governing GRATs that were included in the Small Business and Infrastructure Jobs Act of 2010 passed by the House of Representatives. It also discusses how the Congress increased the risk of mortality associated with using the estate planning technique by mandating a GRAT to bear a minumum of 10 years.


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