GRATS Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4287 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 4287 To amend the Internal Revenue Code of 1986 to modify rules for grantor trusts. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES April 14, 2026 Mr. Wyden (for himself and Mr. King) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to modify rules for grantor trusts. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Getting Rid of Abusive Trust Schemes Act'' or the ``GRATS Act''. SEC. 2. REQUIRED MINIMUM 15-YEAR TERM, ETC., FOR GRANTOR RETAINED ANNUITY TRUSTS. (a) In General.--Subsection (b) of section 2702 of the Internal Revenue Code of 1986 is amended-- (1) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively, and by moving such subparagraphs (as so redesignated) 2 ems to the right, (2) by striking ``For purposes of'' and inserting the following: ``(1) In general.--For purposes of'', (3) by striking ``paragraph (1) or (2)'' in paragraph (1)(C) (as so redesignated) and inserting ``subparagraph (A) or (B)'', and (4) by adding at the end the following new paragraph: ``(2) Additional requirements with respect to grantor retained annuity trusts.--For purposes of subsection (a), in the case of an interest described in paragraph (1)(A) (determined without regard to this paragraph) which is retained by the transferor, such interest shall be treated as described in such paragraph only if-- ``(A) the right to receive the fixed amounts referred to in such paragraph is for a term of not less than 15 years and not more than the life expectancy of t