There are effective estate planning strategies for transferring considerable assets to next generation beneficiaries in low-interest rate environments. These strategies are designed to freeze the value of the transferred assets, and shift income and appreciation of the assets, in excess of current interest rates to beneficiaries with little to no gift tax. These techniques include; Low-Interestloans to family members and loans and sales to grantor trusts, Grantor retained annuity trusts (GRATS) and Charitable lead annuity trusts (CLATS).

Many factors come into play when determining which technique should be considered. There are risks as well as benefits for each technique. Please give us a call if you are interested in learning more about any of these planning techniques.