Fred Trump's Tax-Averse Estate Planning

Fred Trump in 1950

Seemed like a quiet year for estate planners. With the Trump tax cuts old news, the Heckerling Institute resorted to promos on NPR to drum up business.

But now Heckerling attendees will have plenty to talk about. The New York Times has published a virtually endless study, adorned with audio-visuals, of how Fred Trump passed his real estate fortune to his children, and most especially to his celebrity son, Donald. Hidden gifts! A large GRAT valued for little! An overreaching codicil that Donald tried, unsuccessfully, to attach to Fred Trump's will!

Even in the age of fake news, you can't make this stuff up.

Could GRATs Lose Their Tax Magic?

Estimated wealth Sheldon Edelson has given his heirs using more than 30 GRATs

Estimated federal gift tax Edelson has saved by using GRATs

Grantor Retained Annuity Trusts have certainly drawn Bloomberg's attention. (Check out the video.) And GRATs again receive attention in the President's budget proposal, as Deborah Jacobs reports. Unlike the pro forma call for a return to harsher estate taxation, the proposed crackdown on GRATs, Crummey trusts and dynasty trusts shouldn't be dismissed, Jacobs believes.

Don’t expect thoughtful estate tax reform — we’re talking congressional horsetrading, perhaps done incrementally. (Heads up: watch those transportation funding bills.)

Richard Covey, the father of high-speed GRATs, estimates his brainchild has saved donors more than $100 billion in taxes since 2000. Could the end be nigh?