GRATS Act
Sen. Wyden Introduces GRATS Act to Limit Estate Tax Loopholes for the Wealthy
The GRATS Act is currently in the early stages of the legislative process. It was recently introduced in the Senate and sent to the Committee on Finance for review. There are no upcoming votes scheduled at this time.
Legislative Progress
While the sponsor leads the powerful Finance Committee, the bill lacks Republican support and targets tax strategies used by major political donors.
Key Points
Impact Analysis
Personal Impact
Small business owners with substantial business assets sometimes use GRATs to transfer ownership of a family business to the next generation at reduced or zero gift tax cost. The new 15-year minimum term and 25% minimum remainder value make this strategy far less effective. Owners who planned to use short-term GRATs to pass on a growing business may now face significantly higher estate and gift tax exposure.
“the right to receive the fixed amounts referred to in such paragraph is for a term of not less than 15 years and not more than the life expectancy of the annuitant plus 10 years”
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
GRATS Act
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.