Intrafamily loans: Low interest rates enhance this wealth transfer strategy

Description

Abstract: Those who have spent a lifetime to build their wealth and are now in a position to financially help their children or other family members may wonder: Should they provide this money in the form of gifts or should they lend it? This article explains why an intrafamily loan is an attractive, tax-smart strategy in light of today’s low-interest-rate environment — but that there are risks, as well.