Overview: Private Annuities

The article “Low-Interest Estate Planning Strategies” described several estate planning strategies that should be considered now that interest rates have reached record lows. One of the strategies that is described in the article is a private annuity.

Webcalculators has been updated to include a new calculator that illustrates the possible benefits of a private annuity transaction, and the development of this calculator was accelerated in order to help planning for the current low interest rates.  The section 7520 rate of 0.4% that is now in effect makes annuities more valuable, which means that private annuity transactions can have lower payouts, potentially increasing the benefit of those transactions for estate planning purposes.

The overview of the private annuity calculator is below:

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