Estates and Probate OPEN Section Meeting (SEP190401): GRATs and the Mathematics of Failure

Monday, April 1, 2019

6:00 PM to 8:30 PM (Eastern Daylight Time)

Quinnipiack Club

221 Church Street, New Haven, Connecticut, United States

Register

46 people have already registered for this event.

  • Lisa Staron
  • Greg Barringer
  • Amy Todisco
  • Margaret Meehan
  • Jack Reardon
  • Leonard Fishman
  • Peter Smith
  • Christopher Drew
  • Thomas Flanagan
  • Heather Lange
  • Rocco Torrenti
  • Heather Rhoades
  • Richard Marone
  • Barbara Taylor
  • William Murray
  • John Driscoll
  • Danielle Ferrucci
  • Suzanne Brown Walsh
  • John Ivimey
  • Amy Day
  • Leslie Grodd
  • Charles W. Pieterse
  • Allie Flood
  • Michael Reardon
  • Ingi-Mai Loorand
  • Michael Schenker
  • Robert Heinimann
  • Leonard Leader
  • Brianna Marquis
  • Robert Godzeno
  • Andrew Nerney
  • Jeff Crown
  • Alexis Gettier
  • Lawrence Church
  • Donna Vincenti
  • Kelley Peck
  • George Smith
  • Alfred Casella
  • Frederick Mullen
  • Joseph Cipparone
  • Brad Dillon
  • Reed Smith
  • James Dougherty
  • Abigail Apuzzo
  • Beth Brunalli
  • William Britt

This meeting is open to all Estates and Probate Section Members.

Program Description

Grantors of underwater grantor-retained annuity trusts ("GRATs") are often faced with two choices: let the GRAT ride out its course in the hopes that its underlying assets will appreciate rapidly enough to create a successful remainder or halt the GRAT by using a note or a swap power and effectively let it fail. This presentation will show that there is only one rational choice: if a two-year GRAT is to be successful at transferring wealth to its remainder beneficiaries, it must achieve significant positive returns in its first year; otherwise, its chances of success (or even breaking even) are staggeringly improbable. Using quantitative analysis to help guide us, we will help grantors know with more precision if and when a GRAT will fail and what to do about it. While quantitative in approach, no prior mathematics background is required.

Speaker

Brad Dillon, Senior Vice President and Senior Wealth Planner for Brown Brothers Harriman

CLE

1.0 CT CLE Credits | 0.0 NY CLE Credits




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