Now is the time – Take advantage of today’s low interest rates to transfer more wealth tax free

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Abstract: To help jumpstart a struggling economy, the federal government began lowering key interest rates last year, and they remain at their lowest level in several years. This is good news for those looking to transfer wealth out of their estate. Lifetime giving strategies are particularly effective when interest rates are low because the probability of outperforming the hurdle rate — and, therefore, transferring wealth tax free — is high. This article explains what hurdle rates are, and details such giving strategies as family loans, grantor retained annuity trusts (GRATs) and charitable lead annuity trusts (CLATs).