,,ii  #aai? ,,congress  #b;d ,session   
,s4 #dbhg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #ad1 #bjbf,mr4  
,wyd5 7= himself & ,mr4 ,k+7 introduc$ !
 foll[+ bill2 :i* 0 read twice & ref]r$ 
to ! ,committee on ,f9ance  ,a ,,bill   
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to modify rules = grantor tru/s4  
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,gett+ ,rid ( ,abusive ,tru/ ,s*emes  
,act or ! ,,grats ,act4  #b4 ,requir$   
m9imum #ae-ye> t]m1 etc41 = grantor     
reta9$ annuity tru/s  7a7 ,9 g5]al      
,subsection 7b7 ( section #bgjb ( !     
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7#a7 by r$esignat+ p>agraphs    
7#a71 7#b71 & 7#c7 z subp>agraphs 7,a71 
7,b71 & 7,c71 respectively1 & by mov+   
su* subp>agraphs 7z s r$esignat$7 #b ems
 to ! "r1  7#b7 by /rik+ ,= purposes ( &
 ins]t+ ! foll[+3  7#a7 ,9 g5]al ,=     
purposes (  1  7#c7 by /rik+ p>agraph   
7#a7 or 7#b7 9 p>agraph 7#a77;,c7 7z s  
r$esignat$7 & ins]t+ subp>agraph 7,a7 or
 7,b71 &  7#d7 by add+ at ! end ! foll[+

 new p>agraph3  7#b7 ,additional        
requirem5ts ) respect to grantor reta9$ 
annuity tru/s ,= purposes ( subsection  
7a71 9 ! case ( an int]e/ describ$ 9    
p>agraph 7#a77;,a7 7det]m9$ )\t reg>d to
 ?is p>agraph7 :i* is reta9$ by !       
transf]or1 su* int]e/ %all be treat$ z  
describ$ 9 su* p>agraph only if-- 7,a7 !
 "r to receive ! fix$ am\nts ref]r$ to 9
 su* p>agraph is = a t]m ( n less ?an   
#ae ye>s & n m ?an ! life expectancy ( !
 annuitant plus #aj ye>s1  7,b7 su* fix$
 am\nts1 :5 det]m9$ on an annual basis1 
d n decrease dur+ ! t]m describ$ 9      
subp>agraph 7,a71 &  7,c7 ! rema9d]     
int]e/ has a value1 z det]m9$ z ( ! "t (
 ! transf]1 :i* is-- 7i7 n less ?an an  
am\nt equal to ! great] (-- 7,i7 #be    
p]c5t ( ! fair m>ket value ( ! prop]ty  
transf]r$ to ! tru/1 or  7,,ii7         
#ejj1jjj1 &  7ii7 n great] ?an ! fair   
m>ket value ( ! prop]ty transf]r$ to !  
tru/4  4  7b7 ,effective dates ,!       
am5dm5ts made by ?is section %all       
apply-- 7#a7 to tru/s creat$ on or aft] 

! date ( enactm5t ( ?is ,act1 &  7#b7 to
 any portion ( a tru/ e/abli%$ be=e !   
date ( ! enactm5t ( ?is ,act :i* is     
attributable to a contribution made on  
or aft] su* date4  #c4 ,c]ta9 transf]s  
betwe5 grantor tru/ & deem$ own]  7a7 ,9
 g5]al ,"p ,,iv ( sub*apt] ,o ( *apt] #a
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by r$esignat+ section #ajfc z     
section #ajfd & ins]t+ aft] section     
#ajfb ! foll[+ new section3  #ajfc4     
,c]ta9 transf]s betwe5 grantor tru/ &   
deem$ own]  7a7 ,9 g5]al ,9 ! case ( any
 transf] ( prop]ty = consid]ation betwe5
 a tru/ & a p]son :o is a deem$ own] ( !
 tru/1 su* transf] %all be treat$ z a   
sale or ex*ange = purposes ( ?is *apt]  
reg>dless ( ! fact t su* p]son is a     
deem$ own] ( su* tru/4  7b7 ,exception  
,subsection 7a7 %all n apply to-- 7#a7  
any grantor tru/ :i* is fully revocable 
by ! deem$ own]1  7#b7 any asset-back$  
securities tru/1 or  7#c7 any grantor   
tru/ :i* is id5tifi$ by ! ,secret>y     
7pursuant to regulations or o!r         

guidance7 z appropriate to exclude f !  
application ( subsection 7a74  7c7      
,def9itions ,= purposes ( ?is section-- 
7#a7 ,asset-back$ securities tru/  7,a7 
,9 g5]al ,! t]m asset-back$ securities  
tru/ means any grantor tru/-- 7i7 = :i* 
! assets ( ! tru/ are mortgage-back$    
securities or o!r asset-back$           
securities1 &  7ii7 :i* is engag$ 9     
securitization transactions4  7,b7      
,exception ,! t]m asset-back$ securities
 tru/ %all n include any grantor tru/   
id5tifi$ by ! ,secret>y 7pursuant to    
regulations or o!r guidance7 z          
appropriate to exclude f ! application (
 subsection 7b77#b74  7#b7 ,deem$ own]  
,! t]m deem$ own] means1 ) respect to   
any tru/1 any p]son :o is treat$ z !    
own] ( su* tru/ 7or a portion !re(7 "u  
subp>t ,e ( "p #a ( sub*apt] ,j4  7d7   
,rule ( con/ruction ,= purposes (       
subsection 7a71 a transf] ( prop]ty =   
consid]ation %all include-- 7#a7 any    
satisfaction ( an annuity1 or  7#b7 any 
dis*>ge ( debt1  by ! tru/ 9 k9d4  4    

7b7 ,relat$ taxpay]s ,section #bfg7;b7 (
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$-- 7#a7 by /rik+ or at ! end (     
p>agraph 7#ab71  7#b7 by /rik+ ! p]iod  
at ! end ( p>agraph 7#ac7 & ins]t+ 2 or1
 &  7#c7 by add+ at ! end ! foll[+ new  
p>agraph3  7#ad7 ,a grantor tru/ & !    
p]son treat$ z ! own] ( ! tru/ 7or      
portion !re(7 "u subp>t ,e ( "p #a (    
sub*apt] ,j ( ?is *apt]4  4  7c7        
,cl]ical am5dm5ts ,! table ( sections = 
"p ,,iv ( sub*apt] ,o ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ ! item relat+ to section #ajfc 
& ins]t+ ! foll[+ new items3  ,sec4     
#ajfc4 ,c]ta9 sales to grantor          
tru/s4,sec4 #ajfd4 ,cross ref]5ces4  4  
7d7 ,effective dates ,! am5dm5ts made by
 ?is section %all apply to transf]s made
 aft] ! date ( ! enactm5t ( ?is ,act4   
#d4 ,paym5t ( tax on income ( grantor   
tru/  7a7 ,9 g5]al ,section #bejc ( !   
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7#a7 9 subsection 7a71 by /rik+ 
,! t]m & ins]t+ ,subject to subsection  

7d71 ! t]m1 &  7#b7 by ins]t+ aft]      
subsection 7c7 ! foll[+3  7d7 ,paym5t ( 
tax on income ( grantor tru/  7#a7 ,9   
g5]al ,not)/&+ subsections 7b7 & 7e71 an
 am\nt equal to ! taxes paid on ! income
 ( an applicable grantor tru/ = any     
cal5d> ye> by a p]son :o is ! deem$ own]
 ( su* tru/ 7or portion !re(7 %all be   
treat$ = purposes ( ?is subtitle z a    
taxable gift made dur+ su* cal5d> ye>4  
7#b7 ,applicable grantor tru/ ,=        
purposes ( ?is subsection1 ! t]m        
applicable grantor tru/ means any tru/--
 7,a7 ) respect to :i* ! taxpay] is     
consid]$ an own] "u subp>t ,e ( "p ,i ( 
sub*apt] ,j ( *apt] #a1 &  7,b7 :i* is n
 fully revocable by ! taxpay]4  7#c7    
,reimbursem5t by tru/ ,p>agraph 7#a7    
%all n apply ) respect to any am\nt paid
 by ! deem$ own] = any cal5d> ye> :i* is
 reimburs$ by ! applicable grantor tru/ 
dur+ su* cal5d> ye>4  7#d7 ,date ( gift 
,9 ! case ( any am\nt treat$ = purposes 
( ?is subtitle z a taxable gift pursuant
 to p>agraph 7#a71 su* gift %all be     

deem$ to h occurr$ on ! e>li] (-- 7,a7  
,decemb] #ca ( ! cal5d> ye> = :i* ! tax 
is paid by ! p]son :o is ! deem$ own]1  
7,b7 ! day be=e ! date ( ! dea? ( su*   
p]son1 or  7,c7 ! date on :i* su* p]son 
r5\nces any "r ( reimbursem5t by !      
applicable grantor tru/ ) respect to !  
cal5d> ye> = :i* ! tax is paid by su*   
p]son4  7#e7 ,deem$ own] ,= purposes (  
?is subsection1 ! t]m deem$ own] has !  
same mean+ giv5 su* t]m "u section      
#ajfc7;c74  4  7b7 ,con=m+ am5dm5ts     
7#a7 ,section #bebb ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$-- 7,a7 by       
r$esignat+ subsection 7f7 z subsection  
7g71 &  7,b7 by ins]t+ aft] subsection  
7e7 ! foll[+ new subsection3  7f7 ,d5ial
 ( d$uction = paym5t ( tax on income (  
grantor tru/ ,no d$uction %all be all[$ 
"u ?is section = any am\nt :i* is treat$
 z a gift by reason ( section #bejc7;d74
  4  7#b7 ,section #bebc ( su* ,code is 
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7j7 ,d5ial ( d$uction =    
paym5t ( tax on income ( grantor tru/   

,no d$uction %all be all[$ "u ?is       
section = any am\nt :i* is treat$ z a   
gift by reason ( section #bejc7;d74  4  
7c7 ,effective dates ,! am5dm5ts made by
 ?is section %all apply to tru/s creat$ 
on or aft] ! date ( enactm5t ( ?is ,act4