The proposed bill, known as the Getting Rid of Abusive Trust Schemes Act (GRATS Act), seeks to amend the Internal Revenue Code to change rules regarding grantor trusts. It introduces a requirement for grantor retained annuity trusts to have a minimum term of 15 years and...
Simple Explanation
The Getting Rid of Abusive Trust Schemes Act (GRATS Act) wants to change the rules about special types of money-saving trust accounts so they are harder to use in tricky ways to pay less taxes. It suggests that these trusts should last a long time, like 15 years, and that when people pay certain taxes for the trust, it might count as giving a gift, which could mean paying more taxes.