In an uncertain market, many wealthy clients are fearful of giving away liquid assets to reduce the size of their estates. An alternative is to give a home to the next generation using a lease-back strategy.
This is according to Chicago based planner and attorney Michael Passananti of Duggan Bertsch, who says paying market rate rent into a grantor trust can be a good way to gradually reduce the size of an estate over time. This is especially so at a time when rents are high and property values remain relatively low, he thinks.
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