About the Course
Introduction
This CLE/CPE course will offer a comprehensive guide to structuring grantor retained annuity trusts (GRATs) under current tax law. The panel will go beyond the basics to provide specific drafting tools to avoid potentially costly mistakes and maximize GRATs' benefits. The panel will discuss client circumstances that benefit most from GRATs, tax consequences, and opportunities and challenges in the current economy. The panel will also discuss sample language for relevant clauses such as self-correcting features, asset substitution powers, term selection, and other critical components of a successful GRAT.
Description
A GRAT is an effective vehicle to transfer to heirs assets and property that will likely appreciate. When set up correctly, GRATs allow taxpayers to transfer property to their children at a minimal tax cost and allow the underlying assets to continue to grow in value outside of the taxpayer's estate. Estate planners must leverage the use of GRATs, ascertain essential structuring techniques, and overcome potential tax pitfalls.
Due to federal interest rates and specific asset values, there is an opportunity to maximize the use of GRATs in estate planning. GRATs are irrevocable trusts typically structured with a short term, allowing for the low cost gifting of property expected to appreciate over that term. When the trust term ends, the remainder interest (after the initial value plus interest is paid back to the trust's grantor) passes to the grantor's children. As long as the grantor survives the GRAT term, the amount that passes to the children is out of the grantor's estate and no longer subject to estate tax.
Listen as our panel of experienced estate planning attorneys discusses best practices for maximizing the benefits of GRATs.
Presented By
Ms. Fournaris delivers sophisticated solutions to high-net-worth individuals, multigenerational family groups, owners of privately held businesses, and CEOs of public companies in matters involving complex estate, trust, and tax planning, philanthropic giving, and succession planning. She adeptly advises family offices and family groups on asset management and trust administration, ensuring that family legacies are preserved and enhanced. Ms. Fournaris excels in facilitating strategic family meetings, helping clients develop cohesive mission statements, and providing critical insights into the tax and investment implications of various trust structures. She leads Morgan Lewis's global private client practice and is a leader of the firm’s family office strategic initiative. With a career spanning over three decades at our firm, Ms. Fournaris has earned a reputation as a trusted authority in estate planning, wealth management, and private client tax strategy.
Ms. Howard-Potter is a Partner and member of Pryor Cashman’s Private Client Group and Trusts + Estates Practice. She counsels individuals and families on all aspects of estate, gift and succession planning, estate and trust administration, and charitable and tax planning, including developing, structuring, drafting, and implementing estate plans. Ms. Howard-Potter is also experienced in the administration of complex estates and trusts. This includes not only legal experience, such as petitioning the court for probate, appraisals, sales of estate assets, distributions of estate and trust funds, and post-mortem tax planning, but even more importantly, compassion, patience, and responsiveness.
Ms. Mendel has spent the last 15 years honing her craft counseling high net worth families on complex trust, estate and family office planning. She is a strong communicator who is skilled at listening to her clients – learning about their lives, business ventures and family needs – and helping them tailor a plan to achieve their goals.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Thursday, October 8, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. Structuring GRATs
A. Regulatory and statutory requirements
B. Impact of interest rates and depressed assets
II. Tax consequences for GRATs
A. Gift tax implications
B. Estate tax implications
C. Generation-skipping transfer tax implications
D. Income tax implications
The panel will review these and other key issues:
- What are the statutory and regulatory requirements for structuring GRATs?
- How do the current interest rates and asset values impact the viability of GRATs?
- What are effective planning approaches for using GRATs?
