Asset Protection

In Revenue Ruling 2010-18, the IRS published the applicable federal interest rates for July, 2010. These are some of the lowest rates in the past thirty years, and as far as I can see,some of the lowest rates in modern history. For example, you can sell assets in July in exchange for a promissory note with athree year termand an interest rate of 0.61%. Or, you can sell assets in July in exchange for a promissory note with a nine year term and an interest rate of 2.33%. Or, if you have previously sold assets to a trust for estate planning purposes, you could re-finance the note at these historically low interest rates. These low rates allow more of your assets to grow outside of your estate and pass to thenext generation free of estate taxes.

"Give a portion to seven, and also to eight; for thou knowest not what evil shall be upon the earth."

On January 1, 2010, the estate tax was repealed. But the estate tax is not really dead, only sleeping. As of this date, this is my prognosis on the estate tax.

Last weekend I took 20 young men and 8 adults on a winter campout in the Uintah National Forest in Northern Utah. We rented cross country skis and we carried our gear in backpacks and sleds. We began our trek as the sun set and an enormous full moon began to rise over the horizon. As we ski'd through the forest, we heard coyotes (and possibly wolves) howling in the distance. We traveled six miles, and the final mile was a steep climb, in soft snow, pulling heavy sleds. At times I wondered if I had made the right choice. It certainly would have been safer and easier to stay in my comfort zone at home. But in the end, I realized that the risks were well worth the rewards. I will forever cherish the friendships I enjoyed on this adventure, the brightness of the moon on the snow, the stark shadows, the erie sounds of wild animals in their natural habitat, the vitality of working my muscles and lungs in the cold fresh air, and the silence and peace of a natural setting far removed from city lights, pollution, or man made noise of any kind.