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New BNA Portfolio Provides Comprehensive Treatment of GRATs

NEWS RELEASE

Contacts:
Mark Carrington
(202) 530-1728

Washington, DC (May 22, 2007) – BNA®, publisher of the authoritative and universally recognized Tax Management Portfolios, has released the latest addition to the Estates, Gifts and Trusts series. Portfolio 836-2nd, Partial Interests -- GRATs, GRUTs, QPRTs (Section 2702) addresses transfers of partial interests in property governed by Chapter 14, with particular focus on the powerful and sometimes controversial technique known as the Grantor Retained Annuity Trust (GRAT).  In addition to GRATs, Partial Interests discusses in detail the forms of transfer that qualify for exceptions to § 2702, including personal residence trusts, qualified personal residence trusts (QPRTs), and grantor retained unitrusts (GRUTs).

The Portfolio provides in-depth analysis of the various techniques with special focus on the importance of the nature and performance of financial assets transferred through GRATs.  It analyzes the rules for making transfers that will qualify for an exception to unfavorable valuation under § 2702 and thus minimize transfer tax, evaluates planning options, and provides sample forms for qualified transfers. Section 2702 provides special rules to determine the gift amount when an individual makes a "transfer in trust" to (or for the benefit of) a "member of the individual's family" and the individual transferor or an "applicable family member" of the transferor retains an interest in the trust.

In addition to discussing the statutory and regulatory requirements that must be satisfied to qualify for the exceptions, the Portfolio addresses practical drafting issues and analyzes alternative planning choices that should be examined in choosing the transfer vehicle and provides important insight into the coordination of investment considerations and the operation of the various techniques.
For detailed treatment of the other components of Chapter 14, see 835-3rd T.M., Transfers of Interests in Family Entities Under Chapter 14: Sections 2701, 2703 and 2704.
This Portfolio may be cited as BNA Tax Portfolio 836-2nd, Blattmachr, Slade and Zeydel, Partial Interests -- GRATs, GRUTs, QPRTs (Section 2702).

Jonathan G. Blattmachr is a partner with Milbank, Tweed, Hadley & McCloy, New York, New York. He is the author or co-author of over 300 articles and five books on estate planning topics. He was the Editor of The Chase Review, during its entire 18-year publication history by The Chase Manhattan Bank, and is a former editor of Probate Notes (published by the American College of Trust and Estate Counsel).
Mr. Blattmachr has served as a lecturer-in-law of the Columbia University School of Law and an Adjunct Professor of Law at New York University Law School. He is a Fellow and former Regent of the American College of Trust and Estate Counsel and past chair of its Estate and Gift Tax Committee. Mr. Blattmachr is also former chairperson, Trusts and Estates Law Section, New York State Bar Association, and a member of the Alaska, California and New York Bars.

Georgiana J. Slade is a partner with Milbank, Tweed, Hadley & McCloy, New York, New York. She is the author of 807 T.M., Personal Life Insurance Trusts, and has written extensively on a variety of subjects, including “Selection of Trustees: Tax and Other Issues” Blattmachr, Rivlin, Slade. Ms. Slade is Vice-Chair of the Tax Committee, Trusts & Estates Section, New York State Bar Association, and a former Chair of its Legislation and Tax Committees; and is a member of the New York and Pennsylvania Bars.

Diana S.C. Zeydel is a shareholder of Greenberg Traurig, P.A., in Miami, Florida.  She is a frequent author and lecturer on a variety of subjects.  She is a Fellow of the American College of Trusts and Estates Counsel (ACTEC) and a member of its International Planning Committee, Estate and Gift Tax Committee, Program Committee, and a past member of the Nominating Committee.  Ms. Zeydel serves as Co-Chair of the Generation-Skipping Tax Committee of the Real Property, Probate and Trust Law Section and is a member of the Executive Counsel of the Florida Bar as well as a Circuit Representative.  She serves on the Community Development Board of the Miami City Ballet and is Chair of its Planned Giving Committee.  Diana Zeydel is a member of the Bars of Florida and New York.

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BNA is a leading publisher of print and electronic news, analysis, and reference products, including the recently launched Accounting Policy & Practice Series.  BNA publications intensely cover legal and regulatory developments for professionals in business and government. BNA is the oldest wholly employee-owned company in the United States, and produces more than 350 news and information services — including Daily Labor Report and Daily Tax Report — widely respected for comprehensive and objective reporting and analysis.

For more information, contact Mark Carrington, BNA Tax & Accounting, at 202.530.1728.