S 4287
GRATS Act
Jurisdiction
US Congress
Session
119th Congress (2025-2026)
Last updated at
Jun 14, 2026, 7:46 AM
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- Passed Senate
- Passed House
- To President
- Became Law
Bill overview
The GRATS Act modifies rules surrounding grantor retained annuity trusts (GRATS) to prevent abusive tax avoidance schemes. Specifically, it requires a minimum 15-year term for GRATS and sets minimum value requirements for the remainder interest. The bill also addresses transfers between grantor trusts and their deemed owners, treating them as sales for tax purposes, with exceptions for certain trusts like asset-backed securities trusts. Finally, it changes how taxes paid on a grantor trust’s income are treated, effectively treating them as gifts for gift tax purposes.
Sponsors
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Primary sponsor
Cosponsor
Angus S., Jr. King
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