Jeffrey Epstein was back in the news in 2021. This time, the focus was on 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? 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, the savings can be amazing. But you also need the right family asset and a good appraiser. Why do these things matter? Because the amount that is transferred (or “gifted”) for federal gift tax (or estate tax) purposes can be very small […]