Jeffrey Epstein was back in the news in 2021, this time regarding a unique and sophisticated estate planning technique called a GRAT. We had previously provided insight on Jeffrey Epstein’s estate and potential creditors of the now deceased Palm Beach resident. So, what is a GRAT and why are Florida families and trustees litigating about these Florida trusts? What is a Florida GRAT? What is a Florida GRAT? GRAT is short for Grantor Retained Annuity Trust. “It’s a fantastic, low risk estate planning technique that can literally save millions, even billions, in estate taxes if done correctly” says Palm Beach trust litigator John Pankauski. And Pankauski should know. After all, he was reading the IRS federal regulations on GRATs back in the early 90’s and writing them for wealthy clients over 20 years ago. Today, he doesn’t write or draft GRATs. He and the handful of expert litigators at his firm now only litigate and handle appeals for GRATs. Jeffrey Epstein GRATs With a GRAT, the creator, or settlor of a special trust irrevocably transfers property to her trustee. The grantor of the GRAT retains, or keeps, an annuity stream for a fixed term–such as a number of years. With a properly drafted or written GRAT, and the right family asset and a good appraiser, the amount that is transferred for federal gift tax (or estate tax) purposes can be very small — sometimes even zero. That technique is referred to as “zero-ing out a GRAT.” So, what is the […]

West Palm Beach probate litigator, John Pankauski,  is the author of Pankauski’s Trustee’s Guide: 10 Steps to Family Trustee Excellence. If you are a trustee or a beneficiary of a family trust, you need this book. Palm Beach trust litigator John Pankauski- the attorney who the attorneys hire- gives you the inside scoop on what it means to be a trustee and what you need to know if you are involved with a Florida family trust.