Eric Mann, a partner in the Private Wealth practice group, was quoted in the article “Rich Americans Are Running Out of Time to Take Advantage of Trump Tax Cuts. Here’s How They Are Giving Away Millions to Their Children Now,” recently published in Business Insider. The article explores methods for transferring wealth to beneficiaries and how rising interest rates have affected what is included in grantor-retained annuity trusts (GRATs).
“Back in 2020, you could throw anything in there, high-interest performance bonds, a very conservative stock portfolio,” explained Mann. “But as interest rates go up, you need an asset with more volatility and more growth potential to get over that hurdle rate.” Mann went on to indicate that it could be an auspicious time to move highly volatile assets (such as cryptocurrency) into a GRAT because grantors can switch assets in a GRAT as long as they are of equal value.
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