Why a private annuity is a powerful estate planning tool
Abstract: Affluent families looking for ways to reduce their gift and estate tax exposure should consider private annuities. Under the right circumstances, a private annuity can generate significant tax savings. A 2013 U.S. Tax Court decision that approved the use of a deferred private annuity for estate planning purposes has potentially made this tool even more powerful. This article explains how a private annuity works and the advantages of deferral.