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Three Ways to Transfer Wealth in Light of Rising Interest Rates Planning Update

VIEW PLANNING UPDATE (PDF)

SUMMARY

The Federal Reserve recently raised interest rates for the third time since 2008. While rates are still relatively low compared to historic rates; with each increase, three popular wealth transfer techniques—grantor retained annuity trusts (GRATs), charitable lead trusts (CLTs), and loan-based options—may become less effective. This Wealth Planning Update provides an overview of these popular wealth transfer techniques, the impact of a rising interest rate environment, and examples of the cost of waiting.