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Not Another Estate Planning Article on the Pending Reduction of the Lifetime Exemption | Chambliss, Bahner & Stophel, P C

Grantor Retained Annuity Trust (GRAT) When you create a Grantor Retained Annuity Trust (GRAT), the grantor will receive a stream of income, at least annually, for the term of the trust. The payout is based on the present value of assets using the effective AFR Rate. As a result of this payout requirement, there is often little to no estate tax exemption used when you fund a GRAT.  As interest rates get lower, the required payout also gets lower. When interest rates are low, it is easier for the growth and income generated by assets in the trust to be greater than the required payouts, leaving more assets inside the trust at the end of the day. When the trust terminates, anything left in the trust is transferred to the remainder beneficiary often children or trusts set up for the benefit of children. 

Zoom founder Eric Yuan transfers RM24 72bil worth of shares

Zoom founder Eric Yuan donates US$6b worth of shares

Yuan gifted almost 18 million shares of the conferencing-technology firm last week. ERIC Yuan, chief executive officer of Zoom Video Communications Inc., donated more than a third of his stake in the company, filings show. Yuan gifted almost 18 million shares of the conferencing-technology firm last week. The filings didn’t specify the recipient of the stock, which was owned by a Grantor Retained Annuity Trust, or GRAT, for which Yuan is a trustee. The shares were valued at about $6 billion, based on Friday’s closing price. The distributions are consistent with the Yuans’ typical estate planning practices, ” a Zoom spokesman said in a statement.

Zoom CEO Eric Yuan donates $6 billion of shares

Zoom CEO Eric Yuan donates $6 billion of shares
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