Attractive Estate Planning Techniques For A Low-Interest Rate And Depressed-Value Environment

Advantages of Lifetime Giving in a Low-Interest Rate Environment

Today's historically low interest rates and depressed asset values make this an excellent time to engage in various estate planning techniques. Minimizing gift and estate tax when transferring assets is of primary importance in this uncertain time. Current conditions present several planning opportunities for transferring wealth at little or no gift tax cost. The following summary highlights several estate planning techniques that may provide significant tax advantages in a low-interest rate and depressed-value environment.

Low-Interest Intra-Family Loans

Intra-family loans allow parents to transfer significant amounts of wealth to their children (or to trusts for their benefit) with relatively minor tax consequences to the parents. Such loans can be made at interest rates lower than those available on commercial loans and the payment terms of an intra-family loan can be fashioned to provide for