Julius Giarmarco's Schools

• Boston University , Class of 1996 Bachelors Received a BA in Computers

Julius Giarmarco's Publications

• Grantor-Retained Annuity Trusts (GRAT), Julius Giarmarco December, 2010 Many of my estate planning clients that own businesses ask me for advice on how to keep the family business in the family after their death. While there is no “one size fits all” solution when it comes to business succession planning techniques, depending on the client’s particular facts and circumstances, I typically recommend a grantor-retained annuity trust (GRAT), an installment sale to an intentionally defective irrevocable trust (IDIT), a private annuity, a self-canceling installment note (SCIN), preferably coupled with valuation discounts. A GRAT is a trust with a specific term, (i.e., 2 years or longer). The grantor/business owner transfers his/her business interests to the GRAT and retains the right to receive a fixed annual payment during the specified term. The annual payment or annuity is a percentage of the initial fair market value of the original assets transferred to the GRAT. At the end of the GRAT term, any remaining assets will be distributed to the named beneficiary or beneficiaries, usually the grantor’s children that are active in the business. The amount of the gift is calculated using the subtraction method. The present value of the annuity payments to the grantor are subtracted from the original value of the assets placed into the GRAT. The IRS requires the grantor to assume that the assets transferred to the GRAT will grow at the rate published by the IRS for the month the GRAT is created. A lower interest rate results in a larger present value for the annuity; and the larger the present value of the annuity, the smaller the amount of the gift. Moreover, the larger the annuity and the longer the term, the smaller the value of the gift. If the assets transferred to the GRAT qualify for valuation discounts (for lack of control and lack of marketability) such as non-voting interests in a Family LLC or Subchapter S corporation, the annuity can be set at a higher rate resulting in a smaller gift. To learn more about GRATs and the other techniques mentioned above, please visit my website, www.disinherit-irs.com, click on “Advisor Resources”, and then click on “Brochures”. !julius.jpg

• The Michigan Business Formbook , Julius Giarmarco's Blog on Bigsight May, 2011 dicle lisesi Attorney Julius Giarmarco possesses expertise in estate and trust planning, life insurance applications, and business succession planning. Practicing in Troy, Michigan, as Chair of the Trusts and Estates Practice Group of Giarmarco, Mullins & Horton, P.C., Julius Giarmarco applies his legal knowledge to assist clients with estate planning, business succession planning, and asset protection planning. He has written articles for the Journal of Practical Estate Planning, NAIFA’s Advisor Today magazine, along with chapters in major works like the Michigan Business Formbook, produced by The Institute for Continuing Legal Education (ICLE). Edited by lawyers Mark A. Kleist, Robert A. Hudson, and Daniel D. Kopka, the Michigan Business Formbook, Second Edition, serves as a legal reference manual for conducting corporate, business, and charitable activities in the state of Michigan. In addition to providing state-specific forms and sample documents, the Michigan Business Formbook contains current information on structuring and licensing professional entities and nonprofits, handling bankruptcy, and managing taxation issues. Covering basic and advanced components of company development, the two-volume, 2,200-page Michigan Business Formbook comprises legal expectations for electronic commerce, like website creation, and commercial finance, including consignment agreements. The Michigan Business Formbook, Second Edition’s 15 unique chapters cover corporations, partnerships, professional entities, trademarks, patents, and copyrights, and debt collections and bankruptcy issues. Julius Giarmarco serves as one of 20 content authors and wrote a chapter on business succession planning for the Formbook.. Other contributing lawyers include Samuel J. Haidle, an attorney focusing on patent and trademark law with Howard & Howard Attorneys PLLC, and Steven A. Harms, a practitioner of retail and commercial regulations with the Law Offices of Muller, Muller, Richmond, Harms, Myers, & Sgroi, PC. The Michigan Business Formbook, Second Edition, is available through ICLE’s website at www.icle.org. Based in Ann Arbor, Michigan, the ICLE provides official resource materials to members of the State Bar of Michigan. Managing partnerships with six Michigan legal colleges, the ICLE commands a statewide network of professionals, university instructors, and graduate and undergraduate students practicing, teaching, or training in the field of law.

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