Double Discounted Transfers: The Silver Lining in the Economic Downturn
It seems clear now, in 2009, that estate taxes are here to stay. Coupling that with the constant barrage of negative economic news, you could probably use some good news. This may help: Now may be an excellent time for common wealth transfer techniques. Why? You have the benefits of a double discount when implementing these techniques through:
1. Reduced market values: Depressed asset values alone help when making gifts to your family. The lower the value, the lower the potential gift tax.
2. Historically low interest rates: Low interest rates can drive down the value of gifts. The gift tax value resulting from common estate and gift tax techniques is based on a variety of factors, including current Treasury Note interest rates. Often, the lower the rate, the lower the gift’s value.
