Home » Dictionary » regrat

regrat

regrat
 v.— «Grantor-retained annuity trusts, or GRATs, let a person avoid a gift tax when giving money earned on hedge funds, private equity, real estate, stocks and other assets. […] Market shocks that started last year threaten GRATs created over the past few years. So, many people are trying to salvage trusts created in 2005, 2006, 2007 and even 2008 with a technique known as “regratting.” Recent months have seen “an unusually active period of regratting,” says Beth Rodriguez, wealth adviser at J.P. Morgan Private Bank in Chicago. Many clients have regratted, some with six or seven such trusts at a time, she adds. The process involves replacing assets in an existing GRAT, such as stock, with others, such as cash, of an equal amount. The person then takes the shares and puts them into a new GRAT.» —“Revising Grantor-Retained Annuity Trusts” by Arden Dale Wall Street Journal May 4, 2009. (source: Double-Tongued Dictionary)

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Further reading

Why Money is Sometimes “Cool”

While reading Great Expectations (Bookshop|Amazon) by Charles Dickens, a listener in Arlington, Texas, is surprised when one of the characters inherits some money, which Dickens describes as a cool four thousand. Were they really using cool that way...

Love Bites (episode #1569)

The word filibuster has a long and colorful history, going back to the days when pirates roamed the high seas. Today it refers to hijacking a piece of legislation. Plus, the language of yoga teachers: When doing a guided meditation, you may hear...