The Beauty of SCINsuranceThe Beauty of SCINsurance
Historically low interest rates have made self-canceling installment notes (SCIN) an attractive estate-planning tool and a viable alternative to life insurance. Real property is one asset that, as we know, has declined in value during recent months and may be a prime candidate for an intra-family transfer. The asset can be given or sold at its seemingly depressed value allowing its post-transfer appreciation
June 1, 2009
Angelo F. Tiesi
Historically low interest rates have made self-canceling installment notes (SCIN) an attractive estate-planning tool and a viable alternative to life insurance.
Real property is one asset that, as we know, has declined in value during recent months and may be a prime candidate for an intra-family transfer. The asset can be given or sold at its seemingly depressed value allowing its post-transfer appreciation to escape gift and estate tax.
If a client already has used his $1 million gift tax exemption, he should consider selling the asset to an irrevocable grantor trust (IGT) created for the benefit of his family. For income tax purposes, the grantor of an IGT is treated as the owner of the trust assets.1 As a result, a sale ...
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