Unpack the Potential of the Trust to Beneficiary Interest-Free LoanUnpack the Potential of the Trust to Beneficiary Interest-Free Loan

Wealthy families and their advisors strive to provide for the efficient and appropriate use of family capital. Many families use intrafamily loans to make capital available to family members, family entities and trusts for their benefit. The historically low interest rates that supported these transactions, however, have now been supplanted by rapidly rising interest rates brought about by inflation. This has dramatically increased the burdens associated with traditional loan structures, causing many clients and their advisors to review and consider alternatives.  Let’s unpack potential planning opportunities of interest-free loans from a trustee to a trust beneficiary while addressing common misconceptions with respect to the complex ta...