On March 24, 2010, Forbes.com published Goodbye GRATs?, by Ashlea Ebeling. Ebeling summarizes the proposed changes to the GRAT rules, which are “[t]ucked into a jobs and small business tax relief bill.” She also informs of “a window of opportunity” that may close soon:
The new GRAT restrictions would likely be effective when the bill is signed, which means there is a window of opportunity to set up GRATs under the old rules. . . .
planners are recommending setting up multiple short-term GRATs, each with different asset classes. For example, a wealthy investor might put all his emerging market stocks in one trust, all junk bonds in another. The GRAT assets that go up enough save the family estate taxes; the ones that don't exceed a 3.2% return collapse back into the estate, and no harm is done--except for lawyer's fees.