Take advantage of low interest rates in estate planning strategies

Current laws on gifts and estate taxes couple with historic low interest rates and depressed asset values to allow unheard of ways to pass wealth to heirs. Two Miami attorneys, Richard M. Goldstein and Derek P. Richman, provide insightful discussions of transferring wealth in a low-interest-rate environment through grantor retained annuity trusts (GRATs); charitable lead annuity trusts (CLATs); intentionally defective grantor trusts; and family limited partnerships. Each of these strategies has pluses and minuses as detailed in this article in the Journal of Practical Estate Planning. Some strategies raise issues with generation skipping transfer tax issues, but the current interest rate environment can create tax-advantaged transfers of wealth when the economy rebounds.

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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.


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