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.