At its core, a Grantor Retained Annuity Trust (GRAT) is a tool used to make a tax-free gift. And it may be just the right time to consider setting one up for yourself.

Here's how it works: the donor creates a trust which calls for certain payments to be made to themselves over a period of time, and then whatever is left in the trust passes to the beneficiaries named by the donor. 

Specifically, the tax-free part is accomplished by a complex calculation that "zeros out" the GRAT. Zeroing out simply means that the anticipated value of the remaining assets in the trust (the part that is paid to the beneficiaries) is expected to be zero. 

A traditional IRA allows money to grow tax deferred (not tax free).  But, eventually, when that money is withdrawn from the IRA, it is subject to income tax.  IRAs are subject to required minimum distributions. The SECURE Act changed the minimum distribution requirements for inherited IRAs. 

Historically, one could spread out the distributions of the inherited IRA over their own lifetime. After the SECURE Act, a non-spouse who inherits an IRA must withdraw the entire amount within 10 years. Exceptions to the 10-year rule are minor children, disabled or chronically ill individuals, and beneficiaries less than 10 years younger than the decedent.

It's no secret COVID-19 (the Coronavirus) is causing a huge deal of uncertainty within companies across the globe. From the glaring financial and supply chain impacts to the less obvious cultural adjustments, there's a lot for business leaders to figure out.

With that in mind, I wanted to share how Gutwein Law is navigating the COVID-19 pandemic from an operations and cultural standpoint in hopes it could help some companies still struggling to find their feet.

As we all continue to adjust our lives as a result of the COVID-19 pandemic, the United States Patent and Trademark Office (USPTO) is providing relief to those individuals, practitioners, registrants, applicants, or any other person associated with a filing who has a matter before the office and has been impacted by the outbreak.  With the recent passing of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed by President Trump on March 27, the USPTO has extended due dates by 30 days for most filings that were/are due between the time period of March 27, 2020 and April 30, 2020.

As an Elder Law attorney, these uncertain times have become increasingly worrisome to myself and my clients. Most of my clients are at-risk community members as they are over the age of 60, many have underlying health concerns and/or are residing in a long-term care or assisted living facility. COVID-19 has had a major impact on not only my clients’ daily lives and those of their caretakers, but all at-risk community members. 

In addition to the dangers of the virus itself, COVID-19 has presented the elderly with another potential risk: fraud. With that in mind, I want to share a couple concerns we have been experiencing in our practice and helpful tips to combat them.