Keep it in the family – Use an intrafamily loan to cover estate taxes
Abstract: An intrafamily loan is one option if an estate doesn’t have the liquidity to pay estate taxes or other expenses. A benefit of using an intrafamily loan is that, if it’s properly structured, the estate can deduct the full amount of interest upfront. Doing so reduces the estate’s size and, thus, its estate tax liability. This article explores the ins and outs of using an intrafamily loan.