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Intra-Family Loans: an estate planning strategy in a low-interest-rate environment

In the current economic environment, IRS-prescribed monthly interest rates for certain intra-family transactions are at historic lows. As a result, an excellent opportunity exists to transfer wealth to lower generation family members while minimizing taxes. Part One of our three-part series examining effective estate planning strategies in a low-interest-rate environment focuses on “Intra-Family Loans.” A simple technique which is particularly effective in the current low-interest-rate environment is to loan money to a child, grandchild, or other family member – or perhaps to a trust for the benefit of one or more family members – with the borrower paying interest […]