Reciprocal GRATs: When You've Done Everything Else
Probate and Property, July/August 2000, Volume 14 Number 4
By Thomas C. Baird
Thomas C. Baird is a partner with Baird, Crews, Schiller & Whitaker, P.C. in Temple, Texas. He is Chair of the Probate & Trust Division's Family Limited Partnerships and LLC's (C-5) Committee and Vice Chair of the Section's Limited Liability Companies/ Limited Liability Partnership Committee.
In recent years, there has been an unprecedented increase in family wealth. Because of their conservative nature or because they were a product of the Depression, many clients have learned the keys to wealth accumulation-live on less than one makes and invest for the future. With the added effect of spiraling increases in the financial markets, it is easy to see why these families now have more wealth than they ever imagined. These clients are frequently torn between the desire to provide for their future financial security and the desire to avoid estate and gift taxation.