High Interest Rate Estate Planning Opportunities (Completed)

Date: Tuesday, March 5, 2024
Instructor: Klaralee R. Charlton
Begin Time:  11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

The effectiveness of many tax and estate planning techniques is directly linked to the applicable federal interest rate. With the change in AFR from nearly zero to now over 5%, practitioners are starting to revisit previously abandoned techniques and reevaluate current plans that could benefit from possible modification. In this course, we will examine how the change in interest rate makes certain estate planning tools such as CRTs and QPRTs more attractive and other tools such as GRATs and IDGTs less attractive. We will also examine the options clients have to modify current plans to take advantage of the changing rates. In addition to estate planning techniques, we will also discuss more informal planning considerations surrounding tax deductions and income tax mitigation during these higher interest periods. A general understanding of estate tax and estate planning will be helpful before taking this course.

Topics Covered

  • Explain of the difference between the various estate planning techniques used in high and low interest environments
  • Description of how estate tax savings can be achieved by using advanced estate planning techniques
  • Identifying opportunities for clients to modify their current plans to take advantage of higher interest rates
  • Summarizing the benefits and detriments associated with higher interest rates for clients seeking tax saving estate planning opportunities
  • Analysis of the preferable planning opportunities to assist clients to achieve their goals

Learning Objectives

  • Understand how interest rates impact the selection of estate planning tools particularly as they relate to estate tax mitigation
  • Identify the interaction of the AFR with the calculation of discounts and remainder interests
  • Analyze the best estate planning tools for high and low interest rate environments
  • Advise clients on the pros and cons of using certain estate planning techniques to harness the power of higher interest rates
  • Describe the importance of examining current estate plans to identify options for modification


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of gift and estate tax will be helpful before taking this course.

Advance Preparation

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