What to Know About the New Bill Targeting GRATs and 'Abusive Trusts'

What You Need To Know

• A new Senate bill introduced this week would modify key tax and estate planning rules dealing with grantor retained annuity trusts, or GRATs.
• GRATs are used in estate planning to minimize income, gift or estate tax liability on appreciated assets.
• The bill's sponsors say the ultra-wealthy abuse GRATs to avoid paying their fair share of taxes.