Today’s historically low interest rates and depressed asset values make this an excellent time to engage in various estate planning techniques. Current conditions present several planning opportunities for transferring wealth at little or no gift tax cost. The following summary highlights several estate planning techniques which could provide significant tax advantages in a low interest rate and depressed value environment.

ADVANTAGES OF LIFETIME GIVING IN A LOW INTEREST RATE ENVIRONMENT -

Lifetime giving is especially advantageous in the current low interest rate environment. Lower interest rates can have a significant impact on the transfer tax values of many types of transfers. Lifetime giving techniques, such as the use of grantor retained annuity trusts and installment sales, are more attractive in a low interest rate environment. This is due to the fact that the value of such gifts is in part determined by the interest rate, and the lower the interest rate, the lower the value of the gift. Low interest rates enhance the benefits of the following planning techniques, all of which attempt to transfer assets at reduced gift tax values.