private loan

Private Loan Strategy Protects Estates Now Without Gifting

InsuranceNewsNet Magazine published an article written by Russell Towers in January 2015. This article, “ Private Loan Strategy Protects Estates Now Without Gifting”, looks at how people make lifetime gifts to use some or all of the $5 million federal gift tax exemption but also explains how wealthy estate owners can be persuaded to take action while still preserving lifetime gifting flexibility for the future. The continuing historically low interest rate environment gives an opportunity to use the arbitrage between the applicable federal interest rate that must be charged on a private loan transaction and the assumed rate of return on invested assets in an irrevocable trust.
To read more download a PDF of the whole here or read it online.