Sinking stocks offer a window of opportunity when it comes to passing your money on to heirs without incurring huge taxes, Anne Tergesen writes in the Wall Street Journal. Transferring struggling assets to the next generation can mean a big payoff for the heirs when conditions improve—without the estate tax getting in the way. Meanwhile, current low interest rates make trust funds a worthy investment for the kids.
“Today's low interest rates, plus beaten-up stock values, add up to a very high chance of success,” says a financial planner. But how to move the funds? A loan to your kids means low interest for them, and if you help repay the principal, it can shrink your estate. Establishing and lending money to a trust, then selling an asset to that fund, is another effective tax shield. For more smart moves, click the link below.
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