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
Senate
House
President
Law
Unlikely to pass
While the sponsor leads the powerful Finance Committee, the bill lacks Republican support and targets tax strategies used by major political donors.
How we got here
This bill’s path across every version that has carried it.
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Reintroduced
Reintroduced from S. 3988 (118th), which died when its Congress ended.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
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”
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ImpactCertaintyScopeDurationSentiment
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-2
ImpactCertaintyScopeDurationSentiment
Milestones
2 milestones2 actions
Apr 14, 2026Senate
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.
Apr 14, 2026
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
