January

A special purpose acquisition company (SPAC) is a company that has no commercial operations and is formed strictly to raise capital through an IPO to acquire or merge with an existing, privately owned operating company for a specific purpose or in a specific industry. SPACs have very specific rules regarding how they can raise the money and when they must deploy the money.

A grantor retained annuity trust (GRAT) is an estate planning technique permitted under IRS regulations. This technique allows you, the grantor, to make a gift to a trust over which you may serve as the trustee and receive an annuity payment from the trust for a specified period. Any appreciation on the trust property at the end of the trust term passes to your heirs, estate and gift tax free. Read on for more.