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The silver lining of the down markets is the CLT which fasilitates the transfer of assets with a substantial gift and estate tax reduction.
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Credit Crisis Creates Estate Planning Opportunities
Anticipating Opportunities.Developing Solutions.
J. Max Barger, JD, MBA
Financial Crisis
half full
120% of Applicable
Section 7520
Revenue
Federal Midterm
Rate
Interest Rate
Ruling
12/7/2007 4.97% 5.00% 2007-70
1/8/2008 4.31% 4.40% 2008-4
2/8/2008 4.22% 4.20% 2008-9
3/8/2008 3.57% 3.60% 2008-11
12/8/2008 3.43% 3.40% 2008-53
1/9/2009 2.48% 2.40% 2009-1
2/9/2009 1.98% 2.00% 2009-5
3/9/2009 2.33% 2.40% 2009-8
Section 7520 Interest Rates
Valuation Month
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
$1,000,000.00
Gift Tax Credit Used
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
$1,000,000.00
Gift Tax Credit Used
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
$1,000,000.00
Gift Tax Credit Used
Charitable Lead Trust: Income to Charity for term of years or life of Grantor
Outright Gift: Immediate gift tax on
entire value of gift
Appreciated value passes to remainder
beneficiaries
Credit Crisis Creates Estate Planning Opportunities
Anticipating Opportunities.Developing Solutions.
J. Max Barger, JD, MBA
