From the October 2009 issue of Investment Advisor • Subscribe!

October 1, 2009

A Recession Silver Lining

Sidebar to the feature article "Wealth Matters"

More On Tax Planning

from The Advisor's Professional Library
  • Annuities: Variable Annuities Annuities are hot. The tax rules vary with the circumstances. Advisors must be aware of these intricacies when discussing annuities with clients.
  • IRAs: In General Individual Retirement Accounts are highly popular tools for contributing funds that grow on a tax deferred basis. Depending on the type of IRA, the accumulation can be tax free.

For estate planning these days, "the low-interest-rate environment offers incredible advantages," observes Ben Ledyard, director of wealth strategies for Boston-based Silver Bridge Advisors who leads the firm's new Wilmington, Delaware operation. While portfolio values are low, he helps set up "appreciation shifting or estate-freezing types of trusts." Springer has also found a greater tendency for inter-family loans while other forms of financing are still difficult to obtain. Loans to family members must be at the applicable federal rate (AFR), which the IRS sets on a monthly basis, in order not to be considered a gift.

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