In 2021 the House Ways and Means Committee and Senate Finance Committee have drafted legislation that will dramatically change the taxes on Generational Tax Planning. Words like GRATs, CRATs, FLPs, and ILITs are effected as these “financial instruments” that are usually Grantor Trusts, or set up by a donor (grantor), are set up for long term planning. Well, today that long term planning has to change based upon these new tax rules.
Take a look at what Michael Fontanini of Lion Street highlights as potential problems for families that have these very useful instruments in place.