The self-canceling installment note: A calculated risk
Abstract: There are many estate planning techniques that minimize or even eliminate gift and estate taxes when transferring assets to family members. But, often, the most powerful techniques have a significant drawback: mortality risk. A person must outlive the trust’s term to realize the benefits. A self-canceling installment note (SCIN) is an option for those who are in poor health and not expecting to reach their actuarial life expectancy. This article discusses how SCINs work.