GRATS Act

This bill changes federal tax rules for grantor trusts, which are trusts whose income is taxed to the person treated as the trust's owner. It would require grantor retained annuity trusts (GRATs) to last at least 15 years, keep annual payments from decreasing, and have a remainder value of at least the greater of 25 percent of the property transferred or $500,000. It would treat sales and other paid transfers between a grantor trust and its deemed owner as taxable sales or exchanges, with exceptions for fully revocable trusts and certain asset-backed securities trusts. It would also treat income taxes that an owner pays on behalf of certain grantor trusts as a taxable gift, unless the trust repays the owner in the same year.

Full text and official record on Congress.gov

Sponsors

• Ron Wyden Democrat sponsor
• 1 cosponsors